Federal Judge Rules In Favor Of Twinspires In Year-Long Michigan Lawsuit Involving Interstate Horse Racing Act

[Wandering Eyes]

On the heels of winning a preliminary injunction last month in the United States Court of Appeals for the Sixth Circuit, the advance-deposit wagering (ADW) platform TwinSpires on Tuesday scored a victory in its overall federal lawsuit against the state of Michigan.

On Jan. 6, the lower-court judge in charge of the case issued a summary judgment in favor of TwinSpires, meaning Michigan can't make that ADW partner with a brick-and-mortar racetrack in order to do business in that state.

The operator of TwinSpires, Churchill Downs Technology Initiatives Company (CDT), has been arguing for a year that the Interstate Horseracing Act of 1978 preempts a Michigan licensing requirement requiring that ADW providers be linked to a licensed racetrack and live race meeting.

Judge Hala Y. Jarbou of U.S. District Court in the Western District of Michigan (Southern Division) wrote in the Jan. 6 order that, “the Sixth Circuit's reasoning for affirming the preliminary injunction also warrants granting summary judgment to TwinSpires. Thus, the Court will convert its preliminary injunction into a permanent injunction and enter final judgment in this case.”

Jarbou wrote that the defendants in the case, the Michigan Gaming Control Board, its director, and the state attorney general “shall not enforce the Michigan Horse Racing Law (MHRL) licensing requirement–or issue sanctions under the MHRL–against Plaintiff for accepting wagers from individuals in Michigan on races that take place outside Michigan.”

TDN reached out to both the plaintiffs and defendants on Wednesday requesting their comments on the judgment. No replies were received prior to deadline for this story.

It is possible that the Michigan defendants might appeal the lower court's order to a federal appeals court.

Citing precedents, Judge Jarbou wrote in the order that, “Summary judgment is appropriate 'if there is no genuine issue as to any material fact and if the moving party is entitled to judgment as a matter of law.'

“Here there are no relevant disputed facts, so the resolution of the motions for summary judgment is dictated by the Sixth Circuit's legal reasoning,” the order stated.

“As to TwinSpires's request for a permanent injunction, the factors that the Court must consider essentially overlap with the preliminary injunction factors addressed by the Sixth Circuit,” the order stated.

Again quoting from a precedent, Jarbou wrote that TwinSpires “is entitled to a permanent injunction [because] it can establish that it suffered a constitutional violation and will suffer continuing irreparable injury for which there is no adequate remedy at law.”

For a more detailed explanation of the circumstances that led to the year-long standoff, click the following link to TDN's reporting from Dec. 17.

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