A federal court of appeals has affirmed a lower court’s ruling that Texas can prohibit companies like Churchill Downs Inc. from taking wagers from state residents over the Internet and phone.
The U.S. Fifth Circuit Court of Appeals ruled Sept. 24 that a Texas law banning Internet and phone wagering did not violate the Constitution’s protections on interstate commerce, while acknowledging that case law on potential violations of the commerce clause are “quite simply, a mess.” A district court in Texas had previously ruled against Churchill in the matter.