Home News MI regulator sued by Churchill Downs over TwinSpires suspension

MI regulator sued by Churchill Downs over TwinSpires suspension

by
1 views 2 minutes read
Image: Shutterstock

Churchill Downs is taking legal action after the Michigan Gaming Control Board (MGCB) issued a summary suspension order for its TwinSpires brand.

According to court documents filed in the U.S. District Court for the Western District of Michigan, Churchill Downs has filed a complaint seeking declaratory and injunctive relief following the MGCB’s recent decision to issue TwinSpires a summary suspension after the horse racing brand failed to comply with a cease and desist letter sent in December 2024.

The MGCB sent the letter to Churchill Downs detailing how TwinSpires is violating Michigan gaming laws but offering advance deposit wagering. Active statutory requirements in the Wolverine State require ADW operators to partner with a licensed horse racing track.

Last February, Northville Downs closed as Michigan’s last standing horse racing track. As a result of the state having no horse racing facilities, the MGCB considers ADW unlawful.

In addition to the MGCB, Churchill Downs has also filed the suit against MGCB Executive Director Henry L. Williams Jr. and Michigan Attorney General Dana Nessel.

In the suit, Churchill Downs claims that it lawfully offers horse racing in Michigan through the Interstate Horseracing Act of 1978 allowing horse racing without state oversight.

“By providing a single federal regulatory framework, Congress enabled the proliferation of interstate pari-mutuel betting nationwide without state interference,” read the complaint.

Churchill Downs also claims that an amendment to Michigan’s Horse Racing Law in 2019  “runs afoul” of the Interstate Commerce Clause of the U.S. Constitution. The company is making the claim over its licensing requirements for ADW operators.

In the suit, Churchill Downs stated that the Commerce Clause prohibits states from “‘build[ing] up domestic commerce through ‘burdens upon the industry and business of other states.’” The company claimed the requirement of an in-state deal between an ADW operator and a licensed horse racing track is the type of burden that the clause prohibits.

As a result of the claims, TwinSpires and Churchill Downs are seeking a declaration that Michigan’s licensing requirements for in-state and ADW wagering are unconstitutional.

Churchill Downs not alone in Michigan

The MGCB also sent cease and desist letters to Xpressbet, NYRAbets and TVG Network (FanDuel Racing) with the companies complying with the order.

SBC Americas reached out to TwinSpires owner Churchill Downs for comment on the matter but the Kentucky-based company has yet to respond to the request.

Before Churchill Downs filed its suit, the MGCB requested a hearing for TwinSpires before an administrative law judge to determine whether TwinSpires’ suspension in Michigan should continue or whether the gambling and entertainment giant will face fines.

You may also like

About Us

On iGamingWorld, we provide in-depth analysis, the latest news and opinions from famous people of the gaming industry.

Featured Posts

Newsletter