After a number of victories for Churchill Downs, the Western Michigan District Court granted summary judgment in favor of the horse racing firm in its legal battle against the Michigan Gaming Control Board (MGCB) over advance-deposit wagering apps.
Michigan can’t force TwinSpires to obey state ADW laws
Summary judgment takes place when there is no need for discovery, evidence or witnesses because the matter at hand is purely a matter of how to interpret the law. After victories in the lower court and the Sixth Circuit, Judge Hala Yarbou issued a short three-page explanation as to why the case is closed and MGCB can no longer enforce state regulations related to ADW licensing.
The Sixth Circuit concluded that the MGCB could not require Churchill Downs’ ADW app TwinSpires to obtain a license and abide by state-level regulations related to ADW, as those regulations added an unenforceable set of requirements on top of the federal Interstate Horse Racing Act (IHA).
“The Sixth Circuit held that this licensing requirement conflicts with the methods chosen by Congress to achieve the IHA’s objectives because the requirement provides Michigan with veto power over a facilitator’s activities in a manner that was not contemplated by the IHA. Furthermore, the Sixth Circuit held that the licensing requirement ‘targets the federal scheme by bolting on an additional consent for wager acceptances’,” Yarbou noted.
Ruling could impact more states than Michigan
Given the ruling, this decision has impact beyond just Michigan. Churchill Downs has previously noted to the Massachusetts Gaming Commission (MGC) that it does not feel compelled to adhere to its state-level regulation. The company is currently trying to partner with Raynham Park on ADW action in the state, switching from previous partner Suffolk Downs. However, the MGC is concerned the partnership is not legal under state regulations.
Currently TwinSpires is not operational in several states, such as Texas and Utah, which do not have in-state horse racing. However, given the argument the company posed that these states can’t dictate ADW activity in the state during Circuit Court oral arguments, the industry will be watching to see if the company expands operations in the wake of this decision.
