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MGCB issues suspension order against Churchill Downs

9 January 2025

(PRESS RELEASE) -- The Michigan Gaming Control Board has issued a summary suspension order against TwinSpires for violations of Michigan’s gaming laws and the Horse Racing Law of 1995. The suspension order stems from the licensee’s continued operation of advance deposit wagering despite being issued a formal order requiring such activity cease for Michigan residents.

Due to statutory requirements and per the state's Horse Racing Law of 1995, simulcast and ADW wagering must be tied to a live race meet and a licensed track. There are currently no tracks in Michigan licensed to conduct live horse racing. As such, ADW is prohibited. For ADW providers to legally offer these wagers, a track license must first be approved by the MGCB.

Until all licensing issues are resolved, the MGCB has instructed the four licensed ADW providers operating in Michigan—Xpressbet, LLC; Churchill Downs Technology Initiatives Company d/b/a TwinSpires; NYRAbets, LLC; and ODS Technologies, L.P. d/b/a TVG Network—to stop conducting business with state residents. While three of the providers have complied, TwinSpires has failed to comply.

On 23 December 2024, the MGCB notified all licensed third-party facilitators to cease all ADW account wagering services for Michigan residents effective Jan. 1, 2025. Despite this directive, on Dec. 31, 2024, TwinSpires informed the Board that it would continue to offer account wagering for Michigan accounts, in violation of state law.

As of 1 January 2025, all licensed third-party ADW facilitators were ordered to stop offering account wagering to Michigan residents because a necessary racetrack license for pari-mutuel wagering has not yet been secured under Michigan state law. TwinSpires’ continued violation of legal regulations prompted the MGCB to intervene and enforce compliance with the established laws governing simulcast racing by issuing the summary suspension order.

A virtual hearing before an Administrative Law Judge has been requested for the above-named licensee to determine whether this summary suspension should continue, or if other fines and penalties should be imposed.

 
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