• Regulator alleges $5.6M in unpaid assessments
• Churchill Downs calls the action “overreach” and denies wrongdoing
• Escalating fight could affect simulcasting and Derby wagering
The Horseracing Integrity and Safety Authority (HISA) has initiated enforcement proceedings against Churchill Downs Inc. (CDI), accusing the company of failing to pay $5.6 million in 2025 assessment fees—an escalating conflict that could jeopardize wagering on the Kentucky Derby.
According to a February 18 notice of hearing, HISA claims CDI has refused to pay “one cent” of the required assessments tied to Churchill Downs Racetrack, Turfway Park, Ellis Park, and Presque Isle Downs. A hearing before a HISA board panel is set for March 11.
HISA argues that CDI has continued to benefit from national safety and anti‑doping oversight while refusing to fund the system, saying the company’s conduct “demonstrate[s] the nature of freeloading.”
Under federal rules, HISA can bar a racetrack from conducting covered races for each day fees remain unpaid. If the dispute intensifies, the Authority could also ask the Federal Trade Commission to restrict simulcasting—potentially limiting Kentucky Derby wagering to on‑track bettors only, a move that would dramatically shrink handle on one of the sport’s biggest days.
CDI Pushes Back: ‘A Mischaracterization’
Churchill Downs rejected the allegations, saying it “will not accept HISA’s mischaracterization of our actions,” and accused the Authority of a “troubling pattern of overreach” that undermines industry cooperation.
The company is already suing HISA over similar enforcement threats. Filed in December 2024, CDI’s lawsuit argues that the assessments were “illegally imposed” and violate both the U.S. Constitution and the Administrative Procedure Act. That case remains active.
At the center of the dispute is HISA’s revised fee formula. Previously based solely on the number of starts, the new model splits costs 50‑50 between starts and purse levels. CDI, which offers some of the richest purses in the country, argues the change disproportionately increases its financial burden.
A Broader Industry Flashpoint
HISA was created under the Horseracing Integrity and Safety Act, signed into law in 2020, to implement uniform national rules for Thoroughbred racing. While supporters say the reforms modernize a fragmented regulatory landscape, some tracks and state commissions have resisted the system, citing cost, autonomy, and the absence of federal funding.
The Churchill Downs fight is now one of the most consequential tests of HISA’s authority—and its outcome could reshape how the sport is regulated and financed nationwide.
