By T. D. Thornton
The federal lawsuit in Michigan involving TwinSpires and a state law requiring advance-deposit wagering (ADW) platforms to partner with a brick-and-mortar racetrack before accepting simulcast wagers took a twist Friday when a judge granted in part and denied in part a motion by state defendants to dismiss the claim initiated back in January by Churchill Downs Technology Initiatives Company.
“TwinSpires brings this claim under the implied cause of action to enjoin state actors from violating federal law,” United States District Court Judge Hala Jarbou of the Western District of Michigan wrote in a May 9 opinion. “It has alleged facts sufficient to state a claim under preemption, but not for a claim under the dormant Commerce Clause. While the Michigan Gaming Control Board (MGCB) will be dismissed as a defendant, the Executive Director of the MGCB and the Attorney General remain as defendants in this lawsuit.”
That means the underlying case (minus the dormant commerce clause allegations) will proceed against those two individuals while a preliminary injunction issued two months ago in favor of TwinSpires remains in effect.
Back on Feb. 19, the judge had ruled that the MGCB was unconstitutionally violating the Interstate Horseracing Act (IHA) by requiring that ADW to partner with a brick-and-mortar state racetrack before accepting simulcast wagers from Michigan residents.
Via that earlier injunction, which survived an Apr. 18 motion to dismiss by the Michigan defendants, the judge had ordered the MGCB not to enforce the contested Michigan Horse Racing Law (MHRL) licensing requirement about partnering with an in-state racetrack or to issue any sanctions against TwinSpires, a Churchill Downs, Inc. (CDI) subsidiary, for accepting bets from Michigan residents on out-of-state simulcast races.
An entirely separate lawsuit brought against TwinSpires by Henry Williams, the executive director of the MGCB, was remanded from the federal court system to a state court in March.
Both lawsuits stem from the fact that at the start of 2025, Michigan's law requiring ADWs to partner with a racetrack in the state couldn't be fulfilled by any ADW operator because there hasn't been any Thoroughbred racing in Michigan since 2018, and Standardbred races last ran in February 2024.
TwinSpires (and other ADWs) previously partnered with the now-demolished and to-be-developed Northville Downs, whose license-holders as of Jan. 1 were planning to-but had not yet received at that time-approval for the required 30 days of Standardbred racing at a different location so that all parties could be eligible for ADW and simulcasting in 2025.
On Dec. 23, 2024, the MGCB notified all licensed ADWs to cease offering wagering for Michigan residents effective Jan. 1, 2025. The shutdown was to be temporary until the harness track's licensing issue got resolved.
While ADW operators Xpressbet, NYRA Bets, and TVG Network voluntarily complied with the order, TwinSpires did not. After a week of continuing to take bets against the order, the MGCB suspended the TwinSpires license Jan. 7.
On Jan. 31, Northville Downs received its licensing, allowing third-party facilitators to accept wagers in accordance with the MHRL license requirement. However, the MGCB continued to maintain its suspension against TwinSpires.
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