Federal Court of Appeal sides with TwinSpires in ADW case

The United States Sixth Circuit Court of Appeals sided with TwinSpires in a legal dispute over whether the state of Michigan could regulate online horse racing betting with rules that conflict with the Interstate Horseracing Act.

The ruling upheld a federal district court preliminary injunction against the Michigan Gaming Control Board to enforce a state law banning advance betting hub TwinSpires from accepting bets in Michigan on out-of-state races.

TwinSpires began accepting bets from Michigan in early 2010, according to court records. After the Michigan Horse Racing Law changed in 2019, TwinSpires contracted with Michigan’s only track, Northville Downs, to meet the new licensing requirements.

A legal issue arose after Northville Downs temporarily lost its license while it moved its track. With no licensed tracks, TwinSpires was unable to partner with it and comply with the 2019 Michigan law change. TwinSpires continued to accept bets, which led to Michigan issuing a suspension order against TwinSpires on January 7, which remained in effect even after Northville Downs regained its license on January 31.

READ: Federal judge rules ADWs can accept bets from Michigan

Both the federal district court and the court of appeals held that the Interstate Horseracing Act of 1978 provides “the exclusive procedure” for interstate off-track betting; that Michigan’s attempt to require “an additional permit” would likely be found illegal as a result; and that TwinSpires would suffer irreparable harm unless the preliminary injunction against the Michigan Gaming Control Board was upheld.