Federal Judge Blocks Michigan’s Horse Racing Betting Rules

A federal judge has blocked Michigan from enforcing certain rules on online horse race betting platforms declaring them unconstitutional. The ruling benefits TwinSpires, a racebook owned by Churchill Downs, which has been fighting Michigan’s licensing requirements to accept wagers on out-of-state horse races.

Court Sides with TwinSpires, Halts Michigan’s Efforts to Enforce Extra Licensing Rules

Chief US District Judge Hala Jarbou of the Western District of Michigan decided to stop Michigan from punishing TwinSpires for taking bets from state residents on races held in other parts of the country. The judge concluded that TwinSpires won its legal challenge and that using Michigan’s regulations would cause major problems.

Based on the court’s decision, Michigan’s efforts to enforce extra licensing rules on TwinSpires clash 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 power to require additional licensing for these wagers.

By Thursday night, the Michigan Gaming Control Board (MGCB), which oversees horse race betting rules in the state, had not commented on the ruling, reported Covers. The decision might face an appeal.

TwinSpires began a lawsuit in January after the MGCB suspended its license. The company claims Michigan’s laws limit interstate betting. TwinSpires argues that the IHA gives it the needed approvals to take bets since Oregon licenses its operations where its betting hub sits.

Michigan’s Licensing Rules Put TwinSpires at a Disadvantage as Rivals Resume Operations

Michigan changed its horse racing laws in 2019. The new rules require third-party betting platforms to team up with a state-licensed race meeting group. When 2025 started, Northville Downs — Michigan’s licensed racetrack — had lost its operating license while relocating. This meant no Michigan-based tracks could partner up leaving TwinSpires and other betting platforms in a tricky legal spot.

While most platforms stopped taking bets to follow state orders, TwinSpires kept accepting wagers from Michigan residents. This led the MGCB to suspend its license. TwinSpires responded by taking the state to court and asking for an order to stop enforcement of the licensing rules.

Judge Jarbou’s decision highlights that Michigan’s extra rules go against the federal system for interstate horse race betting. However, she turned down TwinSpires’ argument that Michigan’s laws break interstate commerce rules. She noted that the licensing requirements apply the same way to betting companies inside and outside the state.

The fight got worse when Northville Downs got its license back on January 31 letting other third-party betting partners start up again. However, TwinSpires still cannot work because of a court case, which puts them behind their rivals.

Judge Jarbou said this could hurt TwinSpires, pointing out that the company might lose its position in Michigan’s betting world while other companies keep working without any limits.Even though this quick ruling helps TwinSpires, the court battle has not yet been over. TwinSpires wants the judge to rule that Michigan’s rules go against the law for good, but the state still thinks its license rules follow the IHA.