Michigan regulators have suspended TwinSpires, the horse racing platform owned by Churchill Downs, for failing to cease advanced deposit wagering (ADW) after the last licensed racetrack in the state closed down.
According to the (MGCB), “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.
Until all licensing issues are resolved, the MGCB has instructed the four licensed ADW providers operating in Michigan to stop conducting business with state residents. While three of the providers have complied, TwinSpires has failed to comply.”
TwinSpires launched a licenced sportsbook and online casino in the state in January 2021, but Churchill Downs closed those verticals in September 2022. However, pari-mutuel wagering works differently from fixed-odds betting under federal law, with off-track betting legal since 1978.
As a result, TwinSpires were able to make their ADW available separately and have continued to operate it ever since. On December 23, the MGCB requested TwinSpires, Xpressbet, NYRA Bets, and Flutter’s TVG to stop providing the service starting in 2025, with all third-party operators also instructed to comply from January 1.
TwinSpires upsets the horsecart
On December 31, 2024, despite the regulator’s request, TwinSpires notified the board that it would continue to offer the service to its Michigan customers, the only one of those providers to do so. This has resulted in the regulator requesting a hearing before an administrative law judge to determine whether the summary suspension should continue and if any further penalties should be imposed.
Despite TwinSpires failure to cease operations, the suspension may be a temporary order as Michigan’s Northville Downs racetrack has received conditional approval to host live racing from April to June and August to September this year. But any permissions for simulcast wagering is conditional on the track regaining its licence.
What is horse racing ADW?
Advanced deposit wagering is a form of betting typically associated with greyhound and horse racing, whereby bettors fund their accounts in advance, allowing them to bet on races online. The convenience of wagering without visiting a racetrack has made ADW one of the most popular betting options for horse racing fans.
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