Chief US District Judge Hala Jarbou of the Western District of Michigan has ruled to prevent Michigan from penalizing TwinSpires for accepting wagers from state residents on horse races held outside the state.
Court Sides with TwinSpires, Halts Michigan’s Licensing Rules Enforcement
A federal judge has declared certain rules on online horse race betting platforms in Michigan unconstitutional. This ruling benefits TwinSpires, a racebook owned by Churchill Downs, which has been fighting against Michigan’s licensing requirements to accept wagers on out-of-state horse races.
Chief US District Judge Hala Jarbou decided to stop Michigan from punishing TwinSpires for taking bets from state residents on races held elsewhere in the country. The judge concluded that TwinSpires won its legal challenge and that enforcing Michigan’s regulations would cause significant problems.
According to the court’s decision, Michigan’s efforts to enforce extra licensing rules on TwinSpires conflict with the federal Interstate Horseracing Act (IHA) of 1978. The judges determined that because Michigan residents place bets on races outside the state, which are then accepted elsewhere, Michigan lacks the authority to require additional licensing for these wagers.
As of Thursday night, the Michigan Gaming Control Board (MGCB), which oversees horse race betting rules in the state, had not commented on the ruling, as reported by Covers. The decision may face an appeal.
Licensing Challenges and Legal Proceedings
TwinSpires initiated a lawsuit in January after the MGCB suspended its license. The company claims that Michigan’s laws limit interstate betting. TwinSpires argues that the IHA grants it the necessary approvals to accept bets since Oregon licenses its operations where its betting hub is located.
Disadvantages for TwinSpires as Rivals Resume Operations
Michigan updated its horse racing laws in 2019. The new rules require third-party betting platforms to partner with a state-licensed race meeting group. At the start of 2025, Northville Downs—Michigan’s licensed racetrack—lost its operating license while relocating. This left TwinSpires and other betting platforms in a challenging legal situation as no Michigan-based tracks could partner with them.
While most platforms ceased taking bets to comply with state orders, TwinSpires continued accepting wagers from Michigan residents. This led the MGCB to suspend its license. TwinSpires responded by taking the state to court and seeking an order to halt the enforcement of the licensing rules.
Judge Jarbou’s decision indicates that Michigan’s additional rules conflict with the federal system for interstate horse race betting. However, she rejected TwinSpires’ argument that Michigan’s laws violate interstate commerce rules, noting that the licensing requirements apply equally to betting companies both inside and outside the state.
The situation worsened when Northville Downs regained its license on January 31, allowing other third-party betting partners to resume operations. However, TwinSpires remains unable to operate due to the ongoing court case, placing them at a disadvantage compared to their rivals.
Judge Jarbou acknowledged that this could harm TwinSpires, pointing out that the company might lose its position in Michigan’s betting market while other companies continue operations without restrictions. Although this swift ruling benefits TwinSpires, the court battle is not yet over. TwinSpires seeks a ruling that Michigan’s rules violate the law, while the state maintains that its licensing rules comply with the IHA.
