The 2024 Breeders’ Cup at Del Mar unfolds amid significant legal and regulatory challenges that could reshape horse racing wagering in the U.S. Central to this turmoil is a pivotal lawsuit between TwinSpires, an online racebook owned by Churchill Downs Inc., and the state of Michigan. The case questions whether states can impose licensing requirements on interstate online horse betting or if federal law—the Interstate Horseracing Act (IHA)—preempts such restrictions. TwinSpires argues that as long as consent is obtained from the race track, the track’s state commission, and the state where the wager is accepted, interstate betting should be allowed without additional state licensing. Michigan counters that wagers must comply with state laws where the bettor resides, warning that accepting TwinSpires’ interpretation could force states like Utah, which prohibit gambling, to allow online horse betting. The outcome could dramatically expand or restrict legal online horse betting across all 50 states.

Compounding the legal uncertainty are growing complaints from everyday bettors about “computer-assisted wagering” (CAW) groups, which use sophisticated algorithms to place large bets just before races, causing volatile odds and disadvantaging casual bettors. This frustration has culminated in a new class-action lawsuit accusing major racetrack owners and CAW operators of colluding to rig betting pools in favor of elite insiders, transferring billions in profits away from average bettors. Meanwhile, prediction markets, which offer sports betting under federal regulation, have yet to enter horse racing but are closely watched by Churchill Downs, which asserts that horse race wagering is uniquely governed by federal law and is prepared to legally challenge any such incursions. Together, these legal battles and industry tensions cast a shadow over the sport’s future betting landscape even as the Breeders’ Cup showcases top-tier competition.