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A federal appeals court says Michigan likely went too far when it tried to shut down TwinSpires’ online horse betting operations, a ruling that could shape how states regulate advanced deposit wagering (ADW) going forward.
In a decision released Tuesday, the US Court of Appeals for the Sixth Circuit ruled that Michigan probably cannot enforce its licensing requirements against TwinSpires, the online horse racing platform owned by Churchill Downs Inc., while a broader legal challenge plays out.
Why Michigan suspended TwinSpires
The dispute began after the Michigan Gaming Control Board (MGCB) suspended TwinSpires’ ability to accept wagers from Michigan residents.
Under Michigan law, third-party betting platforms must be licensed through a contract with a Michigan racetrack. When the state’s only licensed racetrack temporarily lost its license, regulators ordered platforms like TwinSpires to stop taking bets from Michiganders.
TwinSpires refused, and ultimately sued, arguing that Michigan’s requirement conflicted with federal law governing interstate horse wagering.
What federal law says about interstate betting
At the center of the case is the Interstate Horseracing Act (IHA), a federal law that allows licensed platforms to accept wagers across state lines if certain conditions are met.
The Sixth Circuit said the IHA sets a specific framework for interstate betting and that states cannot add extra hurdles that interfere with it. In the court’s words, Michigan’s licensing rule “stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.”
In short, federal law already spells out when interstate wagers are legal, and states cannot rewrite those rules.
Why the court rejected Michigan’s argument
Michigan argued that it has broad authority to regulate gambling within its borders. While the court acknowledged that states do have regulatory power, it said that authority has limits.
“States may not regulate interstate commerce in a way that conflicts with federal law,” the court wrote, rejecting the MGCB’s position.
The judges concluded that TwinSpires is “likely to succeed on the merits” of its claim that federal law pre-empts Michigan’s licensing requirement.
What this means for Michigan bettors
The ruling does not end the case, but it allows TwinSpires to continue accepting wagers from Michigan residents while the lawsuit continues in federal court.
For Michigan bettors, that means uninterrupted access to TwinSpires for now. For regulators and betting operators nationwide, the case could help define how much control states have over online betting platforms that operate across state lines.
As online wagering expands, the decision sends a clear message: When state gambling laws clash with federal interstate commerce rules, federal law comes out on top.
