MGCB Takes Action Against TwinSpires for ADW Violations

The Michigan Gaming Control Board (MGCB) has issued a summary suspension order against TwinSpires, citing breaches of Michigan’s gaming statutes and the Horse Racing Law of 1995. The action stems from TwinSpires’ refusal to cease its advance deposit wagering (ADW) operations for Michigan residents, despite formal directives to halt such activities.

Under Michigan’s Horse Racing Law of 1995, ADW and simulcast wagering are legally permitted only if they are linked to a licensed racetrack conducting live race meetings. However, the state currently lacks any active tracks with the necessary licenses. This legal framework prohibits ADW wagering until a track license is approved by the MGCB.

Licensed Providers Ordered to Stop Operations

In compliance with state law, the MGCB mandated that all four licensed ADW providers—Xpressbet, Churchill Downs Technology Initiatives Company (operating as TwinSpires), NYRAbets, and ODS Technologies (doing business as TVG Network)—cease conducting business with Michigan residents. While three providers adhered to the directive, TwinSpires persisted in offering its services in violation of the law.

On December 23, 2024, the MGCB formally notified these third-party ADW facilitators to terminate wagering for Michigan residents by January 1, 2025. Despite the clear deadline, TwinSpires informed the Board on December 31, 2024, that it would continue its operations. This noncompliance directly contravened state law, prompting the MGCB to take enforcement action.

Effective January 1, 2025, all licensed ADW facilitators were required to cease operations, as Michigan law mandates a racetrack license for pari-mutuel wagering. TwinSpires’ decision to defy this order led to the issuance of a summary suspension by the MGCB. The Board emphasized its commitment to enforcing compliance with legal regulations surrounding simulcast and ADW wagering.

The summary suspension underscores the MGCB’s zero-tolerance policy toward noncompliance. While other licensed operators have cooperated with the state’s legal requirements, TwinSpires’ continued operations presented a significant violation of Michigan’s gaming framework.

Virtual Hearing to Determine Next Steps

The MGCB has requested a virtual hearing before an istrative Law Judge to evaluate whether TwinSpires’ suspension should remain in place. The hearing will also assess the possibility of additional penalties or fines. This process will determine the extent of consequences for the provider’s ongoing violations.

By enforcing the state’s gaming laws, the MGCB aims to ensure that all wagering activities adhere strictly to regulatory requirements. The outcome of the hearing will clarify the legal and operational future of TwinSpires in Michigan.

Source:

“Michigan Gaming Control Board issues suspension order against Churchill Downs Technology Initiatives Company, doing business as TwinSpires, due to noncompliance with wagering laws”, michigan.gov, January 09, 2025.