TwinSpires Files Lawsuit Against Michigan Regulator After Suspension

Michael Savio
By: Michael Savio
01/13/2025
Sports Betting
Photo by Michael Barera, CC BY-SA 4.0
Photo by Michael Barera, CC BY-SA 4.0

Key Takeaways

  • TwinSpires refused a shutdown request over ADW operations
  • Michigan does not currently have a licensed race track
  • The lawsuit will allow the platform to remain live

The battle between TwinSpires and the Michigan Gaming Control Board (MGCB) just got a bit more heated.

TwinSpires' parent company, Churchill Downs, has filed a new lawsuit against the MGCB this week. The move comes just days after the regulator ordered the operator to cease all advanced deposit wagering activities. 

The lawsuit comes as the MGCB prepares to hold a hearing over TwinSpire's refusal to comply with their request to shut down in Michigan

Lawsuit Will Have National Impact

The lawsuit filed by Churchill Downs affects Michigan and will be closely followed across the country. That is because the situation is unique: An operator refuses to comply with a regulator's order. 

The US has not seen legal gambling operators push back much against regulators. While some have fought fines or penalties, none have openly defied an order to close down.

The biggest reason for operators hesitating to defy regulators is the potential fallout. A legal battle against a regulator is a bad look, and it could cost an operator a chance to be awarded operating licenses in other US markets. 

MGCB Looking to Make an Example of TwinSpires

Don’t expect the MGCB to shy away from the legal fight by Churchill Downs and TwinSpires. That’s due to a concern that other operators could follow the lead of TwinSpires, including the three other ADW operators in Michigan. That will motivate the regulator to make an example of the operator, leading to an expensive and lengthy legal battle.

Lawsuit Could Hinder Efforts to Curb Problem Gambling

If Churchill Downs wins the lawsuit, it will set a legal precedent for the industry. A victory would mean operators have a say in how gambling laws are interpreted and implied.

That precedent could make efforts to curb problem gambling more difficult. Several regulators are looking to make changes to protect bettors and athletes, which would result in a drop in revenue for gambling operators. This has resulted in pushback, though the response from sportsbooks has been limited to marketing campaigns. 

One of the biggest and most heated debates across the gambling industry is over player prop betting on college athletics. While support for banning the controversial bet type is strong, some sportsbooks have been trying to protect it. Giving those operators legal recourse would change that power dynamic, making it far more difficult for lawmakers and regulators to make changes.

Michael Savio covers the US online casino industry, giving readers insights and information they won’t find anywhere else. He has followed the retail industry since his time living in Las Vegas and has continued to do so as the online industry has taken off. Michael covers everything from online casino reviews to industry news, making him one of the most trusted insiders in the business. Check out Michael’s latest articles at casinos.com to see what he has to offer!