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A federal judge has permanently barred the Michigan Gaming Control Board (MGCB) from enforcing a state licensing requirement against TwinSpires.
It’s a major legal victory for the online horse racing operator and limits Michigan’s authority over interstate wagering.
In a Jan. 6 ruling, Chief U.S. District Judge Hala Y. Jarbou granted summary judgment in favor of TwinSpires and converted an earlier preliminary injunction into a permanent one, effectively ending the state’s attempt to require the company to partner with an in-state racetrack.
Background of the TwinSpires–MGCB dispute
The dispute centers on the Michigan Horse Racing Law (MHRL), which requires companies facilitating pari-mutuel wagering to obtain a license from the state and to partner with a Michigan-based racetrack.
TwinSpires, operated by Churchill Downs Incorporated, previously held such a partnership. After that relationship ended, the MGCB suspended the company’s license in early 2025, arguing TwinSpires could no longer legally accept wagers from Michigan residents.
TwinSpires continued operating and filed suit in federal court, arguing that Michigan’s licensing requirement conflicted with the federal Interstate Horseracing Act (IHA), which governs interstate horse wagering.
Federal law pre-empts Michigan licensing requirement
Under the IHA, interstate wagers require consent from three parties: the host racing association, the host state racing commission, and the off-track racing commission where the wager is accepted. The law does not require additional state-by-state licensing approvals.
In December, the Sixth Circuit Court of Appeals ruled that Michigan’s licensing requirement conflicted with that federal framework. Jarbou relied on that reasoning in her final decision:
“The Sixth Circuit held that this licensing requirement conflicts with the methods chosen by Congress to achieve the IHA’s objectives.”
The court found that Michigan’s law effectively gave the state veto power over wagering activity already authorized under federal law.
Court rejects state’s additional approval authority
The appellate court also took issue with how Michigan attempted to layer its requirements on top of the federal system.
According to the ruling, the licensing rule “targets the federal scheme by bolting on an additional consent for wager acceptances,” a move the court said was not contemplated by Congress when it passed the IHA.
Because of that conflict, the court concluded the Michigan requirement was pre-empted and therefore unenforceable.
Permanent injunction solidifies TwinSpires’ position
With no material facts in dispute, Jarbou granted summary judgment and issued a permanent injunction. It prevents the MGCB from enforcing the licensing requirement against TwinSpires.
“TwinSpires is entitled to a permanent injunction because it can establish that it suffered a constitutional violation and will suffer continuing irreparable injury for which there is no adequate remedy at law.”
What the ruling means going forward
The decision ensures TwinSpires can continue offering online horse betting in Michigan without an in-state racetrack partner. While the ruling applies directly to TwinSpires, it could have broader implications for how Michigan – and other states – regulate interstate advance deposit wagering.
For now, the judgment represents a clear legal setback for the MGCB and a strong reaffirmation of federal authority under the Interstate Horseracing Act.
