Commission orders TwinSpires to end Texas operations
Three days after TwinSpires began accepting Texas customers, the state racing commission sent a letter requesting the Churchill Downs Inc.-owned account-wagering provider "cease and desist" operations.
TwinSpires opened its operation to Texas residents last Wednesday, and commission interim executive director David Holmes sent a letter dated Feb. 7 to United Tote president Andrew Archibald. CDI owns both United Tote and TwinSpires.
"United Tote is hereby required to immediately cease and desist from enabling, allowing, facilitating, or processing the placement of digital or electronic horse or greyhound race wagers through TwinSpires ... in Texas outside licensed racetracks’ enclosures," the letter reads in part.
Holmes copied Texas attorney general Ken Paxton on the email. Representatives from neither party immediately returned emails and/or phone messages requesting comment.
TwinSpires stopped accepting customers from Texas in September 2013 after a federal judge dismissed Churchill's lawsuit against the state's ban on internet gaming. But TwinSpires recently won a federal court case in Michigan in which a three-judge panel ruled that the Interstate Horseracing Act does not allow Michigan to require ADWs to be tied to a state licensee.
Churchill's lawsuit 12 1/2 years ago challenged the Texas prohibition on internet wagering, but after its win in Michigan, Churchill appears to be taking the approach that states cannot prohibit what the Interstate Horseracing Act allows.
As of 1 p.m. EST, two Texas residents contacted by Horse Racing Nation said they could place a wager via TwinSpires's mobile app on iPhone.
Regarding the recourse Texas has at its disposal, Holmes said in his letter that "failure to comply with the act, rules or this order may subject you to administrative penalties up to $10,000 per violation. Additionally, the commission may suspend or revoke your license and refer this matter to the attorney general for enforcement. You may also be subject to criminal liability, including for facilitating betting by minors in Texas."