NEW ORLEANS, LA—SEPTEMBER 29, 2014—Churchill Downs Inc.'s effort to get a Texas law declared unconstitutional and allow interstate account wagering has failed again.

A three-judge Fifth Circuit U.S. Court of Appeals panel released a unanimous ruling last week upholding a lower court decision that said the Texas law is constitutional. Churchill has hoped to open the Texas market to advance deposit wagering (ADWs) firms like the Louisville-based company's TwinSpires.com.

The law in question requires in-person betting at Texas tracks. Churchill argued that the rule violated the constitution's interstate commerce clause by favoring in-state companies.

Churchill has "the burden of showing discriminatory effects, not merely illustrating that discriminatory effects could plausibly exist," the appeals court ruling said.

Churchill spokeswoman Courtney Yopp Norris said the Louisville-based casino and racing company expects to appeal.

"We have not taken wagers from Texas residents in over a year," she said. "We expect to continue the appeals process but we have not finalized our decision."

Without that evidence, the judges said they were forced to conclude that the rule's impact on interstate commerce is incidental and that the in-person requirement is even-handed.