A federal judge has blocked Michigan from enforcing certain rules on online horse race betting platforms, benefiting TwinSpires, owned by Churchill Downs. The judge ruled that Michigan’s licensing requirements for out-of-state horse race wagers are unconstitutional, as they clash with the federal Interstate Horseracing Act of 1978.

Michigan’s efforts to enforce extra licensing rules on TwinSpires were deemed problematic by the court, as residents place bets on races outside the state, which are then accepted elsewhere. The Michigan Gaming Control Board has not commented on the ruling, and an appeal may be forthcoming.

Michigan’s new horse racing laws require third-party betting platforms to partner with a state-licensed race meeting group, putting TwinSpires at a disadvantage. While the court’s decision helps TwinSpires, the company is still unable to operate due to the ongoing legal battle with the state over licensing rules.