Churchill Downs Secures Decisive Court Win in Michigan

The protracted legal battle between Churchill Downs and the Michigan gaming regulator finally reached its conclusion, marking a pivotal moment for online horse wagering in the United States. On January 6, the federal court issued a decisive ruling in favor of the Louisville-based operator, permanently blocking Michigan’s attempt to shut down TwinSpires, Churchill Downs’ advance deposit wagering platform.

Churchill Downs Disputed Michigan’s Tethering Requirement

The court issued its decision via summary judgment, meaning that it found no meaningful factual disputes that would justify a full trial. The ruling reinforces an earlier injunction that had previously permitted TwinSpires to remain operational while the legal battle was going on. This development may have significant implications nationwide, as it prioritizes federal law and constitutional principles over state licensing constraints.

The case traces back to early 2025, when the Michigan Gaming Control Board ordered TwinSpires to stop its activities within the state. The regulator argued that the platform violated Michigan’s Horse Racing Law of 1995, which requires online wagering providers to be tethered to a licensed, in-state racetrack. TwinSpires had a previous partnership with Northville Downs, which fell apart after the racetrack relocated.

Rather than seek a new local partner, Churchill Downs directly challenged the rule. Less than a week after the suspension order, the company went to federal court, arguing that Michigan’s licensing requirement unlawfully restricted interstate commerce. The lawsuit alleged that the situation was similar to forcing a national retailer to strike a deal with a local store simply to sell goods within state lines.

The Court Firmly Sided with the Operator

Churchill Downs’ arguments heavily rely on the Interstate Horseracing Act (IHA), a federal statute designed to regulate betting across state lines while encouraging cooperation between racing jurisdictions. The operator claimed that Michigan’s approach went beyond what Congress intended, effectively allowing the state to veto any wagering activity sanctioned by the federal government.

In February 2025, Judge Hala Y. Jarbou sided with Churchill Downs, granting a temporary injunction that allowed TwinSpires to remain active. The state appealed, but its request was denied, leaving the platform unchanged as the legal battle progressed. Momentum shifted decisively in December, when the Sixth Circuit ruled that the IHA preempted Michigan’s tethering requirement.

In her final ruling this week, Judge Jarbou echoed that reasoning, writing that Michigan’s licensing scheme conflicted with the federal framework by adding an extra layer of consent not approved by Congress. This outcome secures Churchill Downs’ digital foothold in Michigan and reaffirms that states cannot use legacy racing laws to block interstate wagering platforms that comply with federal standards.