Kentucky Derby Operator Challenges Texas Betting Law

Law360, Dallas (September 25, 2012, 8:39 PM EDT) -- Churchill Downs Inc. and a subsidiary that operates the online betting site sued the Texas Racing Commission in federal court Friday, arguing a state law unconstitutionally discriminates against online betting businesses by allowing Texas citizens to bet on horse races only in person.

The company says the state recently decided to enforce a “long-dormant” statute, breaking a decade-long truce that allowed online betting through “an unspoken but implicit understanding.” The company argues the Texas Racing Act’s in-person betting requirement prevents Texans from betting on out-of-state...
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