Churchill Downs and NYRA Take Legal Action Against HISA
Churchill Downs Inc. (CDI), the owner of the Kentucky Derby, and the New York Racing Association (NYRA), which operates Belmont Park and Saratoga Race Course, have filed a lawsuit against the Horseracing Integrity and Safety Authority (HISA), the governing body for horseracing regulation.
Churchill Downs and NYRA file lawsuit over HISA fees.
LISTEN TO THIS ARTICLE:Dispute Over Fees Could Impact Major Tracks
The suit, filed in a Kentucky federal court on December 4, alleges unconstitutional practices and fee mismanagement by HISA. The central issue revolves around millions of dollars in fees HISA claims Churchill Downs Inc. and NYRA owe. The plaintiffs argue that HISA’s fee calculations improperly combine race starts and prize money, or “purses”, violating the Horseracing Integrity and Safety Act. According to CDI and NYRA, the law explicitly states that fees should be determined solely by the number of race starts.
HISA was created in 2020 to standardize safety and anti-doping protocols across the sport and it has defended its methodology. The organization maintains that its fee assessment system, approved by the Federal Trade Commission (FTC), delivers fair funding to sustain its programs. Lisa Lazarus, HISA’s CEO, said that the rules were developed after extensive input from stakeholders and are vital to maintaining integrity in horseracing.
HISA has warned that nonpayment of these fees could lead to the suspension of racing at tracks owned by CDI and NYRA, which could jeopardize the 2025 racing season at venues such as Churchill Downs and Belmont Park.
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Broader Constitutional Issues Raised by Lawsuit
In their lawsuit, CDI and NYRA argue that HISA exceeds its legal authority by enforcing penalties through internal processes instead of federal courts. They claim that this approach violates Article III of the US Constitution, which reserves the power to resolve private disputes for the judiciary. The complaint further alleges violations of due process rights and the Administrative Procedure Act, claiming that HISA operates with substantial power but minimal government oversight.
The legal challenge has reignited debate over Horseracing Integrity and Safety Authority’s role in horseracing. Critics say its nationwide rules undermine states’ traditional regulatory authority and impose significant costs on the industry without sufficient federal support. Supporters, including NYRA, have acknowledged HISA’s importance in improving safety standards and promoting fairness.
Both sides are preparing their cases, and arguments are set to unfold early next year. Previous court rulings on HISA’s constitutionality have been mixed, which is only adding to the uncertainty surrounding this case.
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