Texas regulators have moved quickly after TwinSpires resumed taking wagers from Texas residents, issuing a cease-and-desist order less than a week after the platform reopened access, according to Horse Racing Nation.
The Texas Racing Commission directed the Churchill Downs Inc.-owned wagering service to stop processing online horse or greyhound bets placed within the state, citing violations of Texas racing rules.
Key Takeaways
- The Texas Racing Commission ordered TwinSpires to immediately stop accepting online wagers from Texas residents.
- Regulators warned of fines, license action, and possible criminal liability if operations continue.
- The state alleges that horse and greyhound betting violates its racing laws.
The order was issued Feb. 7 by the commission’s interim executive director, David Holmes, and sent to United Tote president Andrew Archibald. United Tote operates TwinSpires, and both companies are owned by Churchill Downs Inc.
In the letter, Holmes instructed United Tote to immediately halt any activity that enables or facilitates electronic wagering through TwinSpires outside the physical boundaries of licensed racetracks in Texas.
TwinSpires quietly opened its platform to Texas customers the previous Wednesday, marking its first attempt to operate in the state since withdrawing more than a decade ago. The company exited the Texas market in 2013 after a federal judge dismissed Churchill Downs' challenge to the state's prohibition on internet wagering.
Holmes outlined a range of potential penalties should the company fail to comply. The letter cited administrative fines of up to $10,000 per violation, possible suspension or revocation of licenses, and referral to the attorney general for enforcement action.
The commission also warned continued operations could expose the company to criminal liability, including for facilitating wagering by minors in Texas.
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Michigan court ruling provides legal backdrop
TwinSpires' brief re-entry into Texas followed a favorable federal appeals court decision that narrowed how states may regulate online betting on horse racing. In December, the U.S. Sixth Circuit Court of Appeals ruled that the Interstate Horseracing Act overruled Michigan state requirements when applied to advance deposit wagering operators.
The decision upheld a preliminary injunction that blocked the Michigan Gaming Control Board from preventing TwinSpires from accepting wagers on races held outside the state. The court found that Michigan's regulatory approach exceeded what is permitted under federal law governing interstate horse wagering.
Records show TwinSpires had accepted wagers from Michigan customers for several years before the dispute escalated. In 2019, Michigan amended its Horse Racing Law to require advance deposit wagering platforms to partner with a licensed in-state racetrack. TwinSpires complied by entering an agreement with Northville Downs, which at the time was the only operating track in Michigan.
That arrangement became untenable when Northville Downs temporarily lost its license while relocating its operations. With no licensed racetrack available, TwinSpires could not meet the amended state requirements but continued accepting wagers.
Michigan regulators responded by suspending TwinSpires on Jan. 7. The order remained in effect even after Northville Downs recovered its license on Jan. 31.
