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Federal Judge Rules ADWs Can Accept Bets From Michigan

Court finds Michigan law in conflict with Interstate Horseracing Act.

A federal judge rules bettors in Michigan can place wagers on out-of-state races through ADW platforms

A federal judge rules bettors in Michigan can place wagers on out-of-state races through ADW platforms

Edward Whitaker/Racing Post

A United States District judge in Michigan preliminarily enjoined authorities from enforcing a state law prohibiting advance-deposit wagering hub TwinSpires from accepting wagers from individuals in Michigan on races outside the state.

Federal judge Hala Y. Jarbou entered the order Feb. 19 against the Michigan Gaming Control Board and Michigan Attorney General Dana Nessel.

According to the court's written opinion, TwinSpires started accepting wagers originating in Michigan in the early 2010s. After what is known as the Michigan Horse Racing Law was amended in 2019, TwinSpires entered a contract with the only track operating in Michigan at the time, Northville Downs, to comply with a licensing requirement in the MHRL. A legal problem arose after Northville Downs temporarily lost its license while it moved the location of its racetrack.

"On January 1, 2025, no horsetracks in Michigan were licensed," according to the 35-page opinion. "Because no horsetracks were licensed, there were no horsetracks for third-party facilitators (such as TwinSpires) to partner with, so entities like TwinSpires could not comply with the MHRL licensing requirement."

Things came to a head when TwinSpires continued accepting wagers, leading the gaming board to issue a suspension order against TwinSpires Jan. 7 that was kept in place even after Northville Downs regained its license Jan. 31.

The court found the 1978 Interstate Horseracing Act provides "the exclusive procedure" for interstate off-track wagers and that Michigan's attempt to require "an additional licensing" is unconstitutional because the IHA preempts conflicting state law.