TwinSpires Triumphs Over MGCB in Michigan ADW Lawsuit
TwinSpires has secured a major victory in its lawsuit against the Michigan Gaming Control Board (MGCB), as a federal judge in Michigan issued a landmark ruling siding with the provisions of the Horseracing Act of 1978.
LISTEN TO THIS ARTICLE:The court granted a preliminary injunction for TwinSpires to continue operating in Michigan despite the MGCB’s allegations that it was operating in violation of state law.
The MGCB had issued a suspension order against the Churchill Downs Incorporated (CDI) subsidiary, citing alleged breaches of Michigan’s advance deposit wagering (ADW) laws and the Horse Racing Law of 1995.
However, Judge Hala Y. Jarbou has ruled that the Interstate Horseracing Act of 1978 governs interstate off-track wagering and not the Michigan Horse Racing Law.
As contended by TwinSpires' attorneys, federal law requires consent from three key parties for interstate simulcast wagers: the host track and horsemen, the state agency where the host track is located, and the off-track racing commission in the state where the wager is accepted.
Major ADW operators, including TwinSpires, are licensed by the Oregon Racing Commission and are authorized to accept ADW wagers in the state. As such,
Under Michigan law, residents can engage in pari-mutuel wagering at physical locations or through ADW only if there is a licensed racetrack to host live racing events.
With the closure of Northville Downs following its final harness meet in February 2024, Michigan is no longer home to a Thoroughbred track and does not host live racing.
After ADW licenses expired in Michigan on January 1, 2025, TwinSpires and other companies were instructed to stop accepting wagers from the state residents. However, TwinSpires continued operating, which led to the MGCB suspending its activities and ultimately prompting the company to file a lawsuit against the agency.
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Judge Jarbou Clarifies Key Term
Judge Jarbou noted that the parties concur on the definitions of the first two consenting entities but diverge on the interpretation of "off-track racing commission." This term, she clarified, refers to an individual or body designated by state statute or regulation to oversee off-track betting within a state. The crux of the dispute lies in the meaning of "that state."
While TwinSpires contends that "that state" refers to Oregon, Michigan's attorneys argue it pertains to Michigan.
Although Jarbou deemed the language “ambiguous,” she nonetheless agreed with TwinSpires.
She wrote that the "off-track state" is where an interstate off-track wager is accepted (15 U.S.C. § 3002(6). Therefore, the required consent is from the regulatory entity of the state where the bet is accepted, not where it's placed. Since TwinSpires accepts wagers at its Oregon-based processing hub, the MGCB’s consent is not required unless the wager is accepted in Michigan.
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