TwinSpires secures a pivotal legal victory allowing continued operations in Michigan.
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Sponsor Our ArticlesA federal judge has ruled in favor of TwinSpires, allowing the online betting platform to continue its operations in Michigan despite a legal challenge from the Michigan Gaming Control Board. The court found that federal laws regarding interstate wagering take precedence over state regulations. This ruling could have significant implications for online betting across the U.S., particularly in states considering similar advance-deposit wagering frameworks.
In the lively world of horse racing, there’s a new development that has everyone buzzing, especially in Michigan. A federal judge, Hala Y. Jarbou, has just granted a preliminary injunction allowing TwinSpires to continue its operations amidst a legal spat with the Michigan Gaming Control Board (MGCB). This ruling not only impacts Michigan but might also set a precedent for other states looking into advance-deposit wagering (ADW) regulations.
The ruling marks a significant moment for TwinSpires, which had found itself in a tough spot after the MGCB prohibited its activities, claiming that Michigan law only allows pari-mutuel wagering at licensed racetracks. The judge argued that the Interstate Horseracing Act of 1978 actually takes precedence over Michigan’s state law when it comes to interstate off-track wagering. This means that as long as certain parties agree, off-track betting could continue, regardless of local regulations.
TwinSpires made a strong case, stating that it operates under an Oregon Racing Commission license and that it accepts ADW wagers from its processing hub in Oregon. Given that Michigan does not have a thoroughbred track at the moment — something that’s been the case since early 2025 — the complexities of state law come into play. Meanwhile, the harness meet at Northville Downs wrapped up in February 2024, and the site has since shifted gears toward development.
TwinSpires had been continuing operations after its ADW licenses expired at the start of 2025, which is what ultimately led to the MGCB suspending their activities. The online betting giant filed a lawsuit arguing that it should not need the MGCB’s consent since it accepts bets placed outside of Michigan. The judge found this reasoning compelling, indicating that the MGCB’s claim was founded on somewhat ambiguous terms related to the off-track racing commission’s definitions.
This ruling is drawing attention from various other states that operate under similar legal frameworks for horse racing. States like Texas and others contemplating advance-deposit wagering will keenly observe how this case unfolds, as it could influence their own approaches to advancing online betting.
Judge Jarbou noted that TwinSpires presented a strong likelihood of success with its constitutional arguments. The judge highlighted that a sudden end to their operations could result in significant losses for TwinSpires, likely affecting around 18,000 customers in Michigan — a sizable group indeed!
While the lawsuit encompassed claims regarding violations of the dormant commerce clause of the U.S. Constitution, the ruling focused more on ADWs and the complexities involved with interstate betting. Michigan’s rules on licensing operations for ADWs were revamped back in 2019, which required businesses to partner with entities licensed to conduct race meetings within the state.
The MGCB stands firm in its belief that the Interstate Horseracing Act doesn’t entirely prevent states from enforcing additional regulations regarding off-track wagering. This decision is unlikely to be the end of the legal tussle; both sides could appeal, leading to continued discussions about how Michigan will regulate ADWs. With both sides holding strong positions, the road ahead looks like it could be bumpy.
The courtroom drama in Michigan is far from over, and it remains to be seen how this ruling will affect TwinSpires and its operations in the state. Will they continue to thrive, or will state regulations catch up with them? The implications of this decision may very well echo across other jurisdictions, making it a fascinating development in the ever-evolving landscape of horse racing and wagering.
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