Churchill Downs wins online horse wagering case in Michigan
The legal dispute between Churchill Downs and Michigan Gaming Control Board (MGCB) raised important questions about online horse wagering. The central issue was whether a state could apply traditional racing laws to block a federally compliant online betting platform. On 6 January, the federal court ruled in favour of allowing the platform to operate.
As reported by SBCAmericas, the ruling permanently blocked Michigan from enforcing its tethering requirement on TwinSpires, Churchill Downs’ advance deposit wagering platform. The court determined that the state’s regulation, which mandated that online bookmakers be connected to a licensed in‑state racetrack, was pre‑empted because it violated the Interstate Horseracing Act. Judge Hala Y. Jarbou reaffirmed earlier injunctions and aligned with the Sixth Circuit’s December decision that federal law overrides Michigan’s additional licensing layer.
Background of dispute
The dispute began when the MGCB ordered TwinSpires to stop operating in the state, citing violations of Michigan’s Horse Racing Law of 1995. Michigan law required online wagering platforms to be connected to a licensed, in‑state racetrack. Without a local track, online betting was not permitted. These rules reflected the 1990s context, when betting was local and physical. Applying them to modern online platforms has become increasingly outdated.
TwinSpires had complied with Michigan’s rules by partnering with Northville Downs, but when the racetrack relocated, the partnership ended, removing Michigan’s basis for approval. Rather than seeking another in‑state partner, Churchill Downs chose to challenge the requirement itself, arguing that it placed unfair limits on interstate commerce.
Legal battle over regulation
Churchill Downs filed a federal complaint, claiming that Michigan’s provision violated the US Constitution and placed excessive obstacles on interstate commerce. The case was shaped by the company’s comparison of the requirement to forcing Amazon to collaborate with a local bookshop in order to sell books in the state.
The Interstate Horseracing Act was introduced to regulate and support interstate horse wagering under a federal framework. Churchill Downs argued that Michigan’s additional licensing requirement conflicted with the Act, and under the Constitution, federal law takes precedence.
Early court decisions
In February 2025, Judge Hala Y. Jarbou granted a temporary injunction allowing TwinSpires to continue operating while the case proceeded. Michigan appealed, but the request was denied, leaving TwinSpires active and giving the operator early momentum. In December 2025, the Sixth Circuit ruled that the Interstate Horseracing Act pre‑empted Michigan’s tethering requirement, weakening the state’s case and shifting momentum towards the operator.
Court’s final judgment
On 6 January, the court issued a summary judgment, finding no factual disputes and ruling that a trial was unnecessary. The case centred solely on legal interpretation, which favoured Churchill Downs.
Judge Jarbou determined that Michigan’s licencing programme violated the federal framework because it introduced an extra consent requirement that Congress had not authorised. The ruling made it clear that although states have the authority to regulate, federal law governing interstate wagering cannot be superseded. The decision gives Churchill Downs steady access to a sizeable market, and Michigan users can now place bets without interruption.
National impact of verdict
States with comparable tethering regulations may face legal challenges as a result of the verdict, which has national ramifications. Additionally, it implies that the outdated restrictions for racetrack tethering may be phased out. Instead of completely prohibiting platforms, states may modify their gambling laws by emphasising taxation and consumer protection. Operators nationwide are anticipated to contest stringent regulations more frequently in the wake of this decision.
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