Churchill Downs Inc. and its wagering platform TwinSpires are again out of the Texas market following the dismissal of a lawsuit brought to block them from taking online horse racing bets from the Lone Star State.
It's not the first time CDI has been out of the Texas market. In 2013, the state government enacted a statute allowing horse race wagering only at tracks or simulcast facilities. CDI and TwinSpires sued Texas in federal district court, arguing the statute was an unconstitutional infringement on the interstate commerce clause. Texas won, and CDI was out of business there.
The most recent suit was brought by the Texas Racing Commission and the State of Texas after Churchill Downs reactivated activity in early February. Texas then filed suit, and TwinSpires notified Texas customers Feb. 27 it was again suspending online horse race wagers.
Churchill Downs removed the state court case to federal court, and the litigation battle lines appeared to be drawn. However, on April 29, Texas and its commission filed a notice of voluntary dismissal of the lawsuit. The dismissal was filed "without prejudice," meaning the lawsuit can be reactivated at any time.
Contacted by BloodHorse about the dismissal, a Churchill Downs spokesperson said, "TwinSpires is not offering wagering in Texas. Other than that, CDI does not have a comment at this time."
