Michigan Gaming Control Board Suspends TwinSpires for Violating State Gaming Laws
Michigan is home to many of our best sports betting sites and our best real money online casinos, but its horse racing industry has been in a state of turmoil.
The Michigan Gaming Control Board (MGCB) has announced a license suspension of TwinSpires, a provider of advance deposit wagering (ADW) and betting services, for violations of Michigan's gambling laws and the Horse Racing Law of 1995.
The action stems from TwinSpires' refusal to cease ADW operations for Michigan residents, despite a formal directive requiring such activities to stop.
Michigan's horse racing industry has been dormant in recent years. The last thoroughbred race in the state ran at Hazel Park in 2018. Northville Downs, the state's last open track, closed in February.
Although Northville Downs has received conditional approval for a license to hold two harness racing meets—scheduled from April 29 to June 30 and August 12 to September 27—the track has yet to obtain full licensing approval from the MGCB.
According to the Horse Racing Law of 1995, approval for simulcasting and ADW betting is contingent on the track hosting at least 30 days of live racing. Under the law, horse racing tracks must secure a license from the MGCB to conduct live racing events.
These licenses have conditions, such as a minimum number of live race days run annually to be considered in compliance. The MGCB licenses simulcasting and ADW, but such activities may only be conducted if they are tied to a licensed live racing meet.
The law also covers instances when no licensed live tracks operate within the state. Activities such as ADW and simulcasting cannot legally occur if no track is licensed. Conditional licenses may be issued for new or returning tracks, but full authorization requires that all licensing conditions be met, including hosting the required number of live race days.
TwinSpires defies rules
Due to the absence of a fully licensed live racing track, the MGCB told the state’s four ADW providers - NYRAbets, LLC; ODS Technologies (TVG Network); TwinSpires; and Xpressbet, LLC - to cease all ADW operations for Michigan residents.
On Dec. 23 last year, the MGCB formally notified the operators that each site was required to terminate ADW services for Michigan residents by Jan. 1, 2025. Despite this notification, TwinSpires notified the regulator on December 31, 2024, of its intent to continue offering ADW services to Michigan residents, directly contravening state law.
The MGCB issued the suspension order as a means to compel compliance with Michigan's gaming laws. A hearing before an Administrative Law Judge will determine whether the suspension should remain in effect and whether TwinSpires should face additional penalties or fines.
The hearing will also address TwinSpires' continued operation in contravention of the statutory scheme for ADW and simulcast wagering in Michigan. A date for the hearing has not yet been set.
Churchill Downs setting revenue records
Despite this potential roadblock for Churchill Downs, the company generated plenty of revenues during 2024. It hit a record in net revenue, net income, and adjusted EBITDA in Q3 2024. TwinSpires increased its year-on-year revenue in Q3 2024 from $112.4 million to $118.7 million. However, the horse racing betting handle led to a $4.6 million revenue decline from this area.
