TwinSpires granted injunction to keep operating in Michigan
The court determined that the company had not violated state law.
Key Points
- The federal judge ruled the Oregon racetrack was the one that needed to give consent for pari-mutuel wagering
- The court cited the Horseracing Act of 1978 as the reason for its decision
A federal judge in Michigan has ruled in favor of the Horseracing Act of 1978 regarding TwinSpires’ ongoing lawsuit with the Michigan Gaming Control Board (MGCB), according to a recent Paulick Report.
The court granted TwinSpires a preliminary injunction, which will allow the company to continue operating in the Great Lakes State.
The MGCB had filed a suit against TwinSpires, which is owned by Churchill Downs Incorporated (CDI). The regulator claimed that TwinSpires’ operations were in violation of state law.
Pari-mutuel wagering at brick-and-mortar locations or via ADW is only permitted if there is a racetrack licensed to conduct live racing, according to Michigan law.
Furthermore, federal law states that interstate simulcast bets can occur if consent is given by the track and horseman where the race is taking place, the state that is hosting the event and by the state where the track is located.
The dispute was over which state needed to have licensing. TwinSpires said in its case that “ADW wagers are accepted in Oregon and the companies are licensed by the Oregon Racing Commission.”
Judge Hala Y. Jarbou said in a statement, “The parties do not dispute the definitions of the first two consenting entities; they only differ on the meaning of ‘off-track racing commission.’
“That term refers to a ‘person designated by state statute or, in the absence of statute, by regulation, with jurisdiction to regulate off-track betting in that state. The parties disagree on the meaning of ‘that state.’ Unless the wager is accepted in Michigan, Michigan Gaming Control Board is not the off-track commission that must consent to the wager.”
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