In its legal dispute with the Michigan Gaming Control Board (MGCB), TwinSpires has won a decision from a federal judge in Michigan. TwinSpires is granted a preliminary injunction by the ruling, which permits the business to carry on with its operations within the state.
The MGCB filed the case, alleging that Churchill Downs Incorporated (CDI)-owned TwinSpires was conducting business illegally in Michigan. The regulator contended that a licensed racetrack holding live races is necessary for pari-mutuel betting, whether it be done in person or by advance deposit wagering (ADW).
Licensing Dispute at the Heart of the Case
Which state’s license requirements applied was at the heart of the legal dispute. According to federal law, interstate simulcast betting is permissible if the track hosting the race, the horsemen’s association, and the necessary state authorities provide consent.
TwinSpires said that because it has a license from the Oregon Racing Commission, it processed its ADW wagers in Oregon. However, the MGCB asserted that Michigan law required its own consent for these kinds of bets.
Judge Hala Y. Jarbou clarified the issue, stating, “The parties do not dispute the definitions of the first two consenting entities; they only differ on the meaning of ‘off-track racing commission.’”
Judge Jarbou further explained that the term “off-track racing commission” refers to an entity designated by state law or regulation to oversee off-track betting. The disagreement, she noted, was about whether Michigan had the authority to regulate TwinSpires’ wagers.
“Unless the wager is accepted in Michigan, Michigan Gaming Control Board is not the off-track commission that must consent to the wager,” she ruled.
This decision allows TwinSpires to continue offering ADW services in Michigan, marking a significant legal victory for the company. The ruling may also set a precedent for how states interpret federal regulations governing online horse race betting.
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