Churchill Downs Takes MGCB to Court over TwinSpires Suspension

Churchill Downs, a prominent horse racing and gaming company in America, has filed a lawsuit against the Michigan Gaming Control Board (MGCB). The suit is related to the recent suspension of the TwinSpires online platform.

Michigan Asked ADW Operators to Cease Their Activities

Earlier this month, the MGCB issued a summary suspension order against TwinSpires, arguing that the Churchill Downs-owned brand has violated Michigan’s gambling laws. According to the regulator, TwinSpires had violated the Horse Racing Law of 1995, which requires advance deposit wagering (ADW) activities to be linked to a licensed live racing track.

Unfortunately, Churchill Downs’ local partner, Northville Downs, failed to secure a license for its new location after departing from its original one.

Currently, the active Michigan racetracks lack a state-issued license, forcing ADW operators to cease their activities. In December 2024, the MGCB officially asked the state’s four licensed ADW operators—Xpressbet, TwinSpires, NYRA Bets, and TVG Network – to cease their operations by January 1, 2025.

TwinSpires is the only company that failed to comply with this order and informed the MGCB that it intends to continue offering ADW products. This led to the summary suspension order in question, threatening TwinSpires with potential fines of up to $10,000 per violation.

Churchill Downs Questioned the MGCB’s Authority

On January 10, Churchill Downs struck back, initiating a federal lawsuit against the MGCB in the US District Court for Western Michigan. In its lawsuit, the gaming company questioned whether the regulator truly had the authority to restrict its race betting brand.

Churchill Downs further alleged that the state’s licensing requirements, which force out-of-state companies to team up with in-state tracks are in breach of federal law and the Commerce Clause. According to the suit, the state’s requirement for TwinSpires to partner with an in-state track is “no different than if Michigan required any online retailer to partner with an in-state brick-and-mortar store before it could accept orders from individuals in Michigan.”

As a result, the TwinSpires brand will pursue declaratory and injunctive relief to protect it from the suspension. The lawsuit added that if TwinSpires is forced to cease its ADW activities, it would wrongfully lose millions of dollars in revenue, which it would never be able to recover. Churchill Downs clarified that interstate pari-mutuel betting sits at the core of its business in the state, meaning that compliance would mean a shutdown of its local operations.

Churchill Downs’ lawsuit relies on the uniform federal framework for interstate wagering on horse races that was established long ago.

Illegal Gaming Den Operators Received Sentences

In the meantime, the MGCB confirmed that the two operators of an illegal gaming operation in Flint have been sentenced. The illegal storefront casino had a dozen gambling machines and even more computers, which offered illegal games of chance. The den also offered unlicensed online gaming via PIN cards.

The two defendants pleaded guilty, resulting in a more lenient sentence. They were sentenced to 12 months of probation and one of them was required to pay a fine.