The Michigan Gaming Control Board has forced online racebooks out of the state, with TwinSpires receiving a suspension order after allegedly failing to comply with the shutdown request. TwinSpires is the online brand of Churchill Downs Incorporated, which the MGCB says is operating in violation of the Horse Racing Law of 1995.
Previously, TwinSpires operated a licensed sportsbook and online casino in Michigan, before CDI shut down those verticals in September 2022. Advance deposit wagering (ADW), a form of online race betting, was available separately and has continued since TwinSpires shut down the other verticals.
Pari-mutuel betting on races is treated differently under federal law than fixed-odds sports betting. Whereas sports betting is illegal unless a state permits it, off-track race betting has been legal at the federal level since 1978. Online racebooks operate in most states. There are exceptions when states pass their own laws about race betting, as Michigan did in 1995.
Why MGCB is not permitting ADW operations any longer
Under Michigan’s Horse Racing Law of 1995, simulcast and advance deposit wagering are required to be linked to a live race meet at a licensed racetrack in the state.
Michigan does not have licensed racetracks authorized to host live horse racing. It’s last track, Northville Downs, ceased operations last February.
As a result, ADW operations are not permitted in the state unless the MGCB first approves a racetrack license. However, that was not enforced against online racebooks until recently,.
Per a statement from the MGCB, that agency recently directed the four ADW providers licensed in Michigan to cease offering that service. Those companies are Churchill Downs Technology Initiatives Company (operating as TwinSpires); NYRAbets, LLC; ODS Technologies, L.P. (operating as TVG Network), and Xpressbet, LLC.
On December 23, according to the MGCB, it notified all licensed ADW providers that they must halt account wagering services for Michigan residents starting in 2025. Nevertheless, TwinSpires allegedly told the MGCB that it intended to continue offering ADW in Michigan. TwinSpires is the only one of those companies that has failed to adhere to the order.
To address the situation, the MGCB has required a virtual hearing to determine the validity of Michigan’s summary suspension against TwinSpires. It’s possible that additional penalties and fines could be imposed.
What is Advance Deposit Wagering?
Advance deposit wagering refers to a system where bettors are required to fund an account in advance before placing wagers. This method is commonly used in horse racing and other forms of pari-mutuel betting, but it can also apply to broader sports betting contexts in jurisdictions where regulations permit.
The pillars of an ADW system are pre-funded accounts and remote betting options. ADW allows bets to be placed via online platforms, mobile apps, or over the phone. This makes it convenient for users to participate without being physically present at a track or sportsbook.
