Churchill Downs Inc (CDI) and the New York Racing Association (NYRA) have filed a lawsuit against the Horseracing Integrity and Safety Authority (HISA) over threatened racing bans for unpaid fees totaling nearly $5 million.

According to the lawsuit, HISA has given the operators 20 days to pay the fees or face daily racing bans. CDI and NYRA argue these fees are illegally imposed and violate both the U.S. Constitution and Administrative Procedure Act.

The core dispute centers on HISA's recent change in fee assessment methodology. Previously based solely on race starts, the calculation now splits 50-50 between starts and purses. The plaintiffs argue this disproportionately affects them as they offer larger prize purses than most operators.

HISA maintains its fee structure, approved by the Federal Trade Commission, ensures adequate funding for its Anti-Doping and Medication Control Program and Racetrack Safety Program. The authority has stated it will "aggressively defend itself" against the litigation.

The lawsuit also challenges HISA's authority to determine fees and impose bans through its in-house enforcement process. The plaintiffs contend this violates Article III of the U.S. Constitution, arguing such matters should be decided in federal court.

HISA, established under the Horseracing Integrity and Safety Act of 2020, is a private self-regulatory organization tasked with implementing nationwide safety standards for horse racing. The organization has faced resistance from state racing commissions concerned about increased testing costs and lack of federal funding support.

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