Federal Court Backs TwinSpires in Michigan, Citing Supremacy of Federal Law
A federal appeals court handed Churchill Downs a victory involving its betting platform, TwinSpires. The court denied a request from the Michigan Gaming Control Board (MGCB) to halt an injunction, allowing TwinSpires to continue operating in the state during an ongoing legal dispute.
State Law vs. Federal Law
The conflict began in January. The MGCB ordered TwinSpires to cease its advance-deposit wagering (ADW) operations in Michigan. The regulator argued that the company violated the state’s 1995 Horse Racing Law. That law requires online horse race betting companies to partner with a licensed, in-state racetrack.
Churchill Downs immediately filed a federal lawsuit. It argued the MGCB’s actions violated the U.S. Constitution’s Commerce Clause.
The company also claimed the federal Interstate Horseracing Act (IHA) of 1978 preempted state law. The central legal question is whether the federal IHA supersedes Michigan’s requirement for an in-state track partner.
The Court’s Rulings
In February, a lower federal court granted TwinSpires a preliminary injunction. This order blocked the MGCB’s shutdown attempt and allowed the platform to remain operational. The MGCB then appealed that decision.
The appellate court has now upheld the initial ruling. In its decision, the court affirmed the supremacy of federal law when it conflicts with state statutes.
The court explained that when Congress enacts a law and a state law creates a conflict, “the federal law takes precedence, and the state law is preempted.” The court found Michigan’s interpretation of the IHA was inconsistent with the law’s purpose of fostering interstate cooperation.
What Happens Next
Despite these favorable rulings, the case is not over. The court will schedule further oral arguments for both parties in the coming weeks.
In the meantime, the injunction remains in place. TwinSpires will continue to accept wagers from customers in Michigan. The case’s outcome will have major implications for how states regulate online horse race betting and could set a precedent for future disputes between state regulators and ADW operators.
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