Churchill Downs Incorporated (CDI), which operates Twinspires in Michigan and elsewhere, has filed a complaint against the Michigan Gaming Control Board (MGCB) in response to its suspension from the market, alleging that the regulator’s interpretation of Michigan law is unconstitutional.
The MGCB had ordered online racebooks out of state, demanding that advanced deposit wagering (ADW) to shut down as of Jan. 1. According to the complaint, Churchill Downs told the MGCB that it would not comply, resulting in the MGCB issuing a suspension order for the company.
Pari-mutuel betting on horse racing is, unlike most forms of gambling, permitted by US federal law. However, states can pass their own racing laws, as Michigan did in 1995. Under the state’s Horse Racing Act, betting is only permitted at facilities hosting live races. However, there are currently no tracks in Michigan licensed to conduct live horse racing.
However, CDI claims that law shouldn’t apply to interstate businesses such as online ADW racebooks. Until the MGCB’s recent actions, Twinspires and several other racebooks had been operating in the state.
The complaint “challenges the state of Michigan’s recent, unlawful efforts to shut down the popular horserace wagering platform that TwinSpires has long offered to Michigan residents.”
CDI believes that the MGCB’s stance violates the Supremacy Clause and Interstate Commerce Clause of the US Constitution.
Why CDI is filing complaint against MGCB
The MGCB required CDI to partner with a licensed racetrack in the Great Lakes State. That became an issue when Northville Downs ended its operations last February. Because of that, the MGCB ordered the following ADW companies to shut down at the beginning of 2025:
- CDI/Twinspires
- Xpressbet, LLC
- NYRAbets, LLC
- ODS Technologies, L.P. / TVG Network
CDI was the only company to not cease operations on Jan. 1. When the suspension was issued, the complaint ensued.
Though CDI voluntarily obtained a license with Northville Downs, it now claims that was never strictly necessary. Its position is that the MGCB lacks the authority to override the Interstate Horseracing Act of 1978 (IHA):
“[Congress] determined in the IHA that ‘the federal government should prevent interference by one State with the gambling policies of another,’ and provided that an off-track betting platform may accept interstate wagers on horseraces if it obtains three, specific consents.
“TwinSpires has obtained these requisite consents for the interstate horseraces on which Michigan residents can wager, enabling TwinSpires to lawfully accept such wagers pursuant to the IHA.
“By seeking to impose additional state licensing requirements, Michigan is not just attempting to interfere with federally-authorized wagering on interstate horseraces, it has effectively banned such wagering—unless TwinSpires meets its demands.”
The complaint says that the Supremacy Clause “forecloses this result.”
Complaint says MGCB licensing ‘runs afoul’ Interstate Commerce Clause
In addition to the Supremacy Clause, CDI also claims that the MGCB violates the Interstate Commerce Clause. This specific clause, according to the complaint, prohibits states from “‘build[ing] up . . . domestic commerce’ through ‘burdens upon the industry and business of other States.’”
CDI claims that the MGCB is interfering:
“Requiring an in-state partnership to transact interstate commerce is exactly the kind of burden and discrimination the Clause prohibits: the licensing power Michigan claims goes well beyond regulating in-state horseracing within its borders.”
Northville Downs appears to be re-opening
The Northville Downs racetrack closed down in February after 80 years because of a re-development project. However, the operators are searching for a new location for a new track.
According to the complaint, Northville Downs has found a new location, though the MGCB has not yet issued a new track license.
It remains to be seen if that would clear up the issues involving CDI and the MGCB. There is no timetable for a resolution for the legal process to take shape.