HISA Targets Churchill Downs in $5.6M Combat That Might Influence Kentucky Derby Betting

• HISA seeks $5.6 million in alleged unpaid charges
• Churchill Downs denies wrongdoing, calls motion regulatory overreach
• Dispute may have an effect on simulcasting and Kentucky Derby wagering

The federal racing regulator has launched enforcement motion in opposition to Churchill Downs Inc., alleging $5.6 million in unpaid charges – a dispute that would threaten betting on the Kentucky Derby.

“Sovereignty” profitable the 151st Kentucky Derby on Might 3, 2025. The race is without doubt one of the most bet-upon occasions in America, however is an ongoing spat between CDI and HISA placing that in danger? (Picture: Michael Reaves/Getty)

The Horseracing Integrity and Security Authority (HISA) accuses the Louisville-based operator of failing to pay its 2025 evaluation charges, which fund nationwide anti-doping and security oversight tied to Churchill Downs Racetrack.

The authority has scheduled a March 11 listening to earlier than a board panel to deal with CDI’s alleged refusal to pay “one cent” for assessments associated to Turfway Park, Ellis Park, and Presque Isle Downs, based on a February 18 discover of listening to.

HISA stated CDI has continued to obtain the good thing about its providers and that its conduct “exhibit[s] the character of freeloading.”

The regulator warned that Churchill Downs could possibly be barred from conducting any coated horseraces for every day the quantity stays excellent, with the prohibition taking impact on the monitor’s subsequent scheduled race days.

If the dispute escalates, HISA may ask the Federal Commerce Fee (FTC) to limit simulcasting, which means solely these bodily current on the racetrack may wager on races – together with the Kentucky Derby, one of many largest single-day betting occasions in US racing.

CDI Claims ‘Mischaracterization’

In response to the criticism, CDI stated it could “not settle for HISA’s mischaracterization of our actions.”

“The Authority’s current escalation displays a troubling sample of overreach that’s dangerous to the trade and inconsistent with the collaborative strategy essential to strengthen the game,” the corporate added.

In December 2024, CDI sued HISA over comparable enforcement threats in opposition to its racing operations. That lawsuit alleges the charges have been “illegally imposed” and violate the U.S. Structure and the Administrative Process Act. The case is ongoing.

CDI contends that HISA revised its fee-assessment system, which had beforehand been based mostly solely on the variety of begins performed by racetrack operators.

Underneath the brand new strategy, charges are calculated on a 50-50 break up between begins and purses. As a result of CDI presents bigger purses than lots of its rivals, the corporate argues it’s disproportionately affected.

Business Friction

HISA is a personal, self-regulatory physique created underneath the Horseracing Integrity and Security Act, signed into regulation by President Trump in 2020. The laws launched uniform, nationwide security and anti-doping requirements for Thoroughbred racing, changing a patchwork system wherein oversight had lengthy been dealt with by particular person states. HISA was established to manage and implement these new guidelines.

The reforms have drawn resistance from some tracks and state racing commissions who’re accustomed to working independently. Critics argue that the stricter testing and compliance necessities are expensive and, as a result of the Act gives no direct federal funding, these bills are in the end handed on to racetracks and different trade stakeholders.