TwinSpires Removes Texas Wagering Case to Federal Court

Churchill Downs, its online wagering platform TwinSpires, and United Tote have filed a notice of removal to federal court of a lawsuit seeking to ban TwinSpires from taking bets from residents of Texas. The lawsuit filed by the State of Texas and the Texas Racing Commission Feb. 24 in a Collin County court asked that a temporary restraining order be entered against CDI and its affiliates after they began accepting wagers from Texas residents earlier in the month. On Feb. 27, without court intervention, TwinSpires notified Texas customers it was suspending their wagers. READ: TwinSpires Turns Off Online Wagers for Texas Bettors The notice removing the case from state to federal court was filed March 30 in United States District Court for the Eastern District of Texas. It claims Texas' opposition to TwinSpires' operations presents a federal question based primarily on the provisions of the Interstate Horseracing Act of 1978. CDI argues, citing judicial precedent, the IHA "exclusively regulates interstate wagering" on horse races. Churchill Downs does not comment on pending litigation, but its filing of a notice of removal may indicate CDI is gearing up to fight Texas after a month of inactivity in the case. Removal to federal court is not automatic. Should Texas fight it, the federal court must decide whether to accept the case or send it back to state court.