HISA seeks $5.6 million from Churchill Downs in dispute that could affect Kentucky Derby betting

The Horseracing Integrity and Safety Authority (HISA) has launched enforcement action against Churchill Downs Inc. (CDI), alleging $5.6 million in unpaid 2025 assessment fees in a dispute that could threaten wagering on the Kentucky Derby.

The federal racing regulator accuses the Louisville-based operator of failing to pay its annual assessment fees, which fund national anti-doping and safety oversight tied to Churchill Downs Racetrack.

A March 11 hearing has been scheduled before an HISA board panel. The hearing seeks to address CDI’s alleged refusal to pay “one cent” for assessments related to Turfway Park, Ellis Park, and Presque Isle Downs, according to a notice of hearing.

HISA said CDI has continued to receive the benefit of its regulatory services and that its conduct “demonstrates the nature of freeloading.”

The regulator warned that the operator could be barred from conducting any covered horse races for each day the amount remains outstanding. The prohibition would take effect on the track’s next scheduled race days.

Should the dispute escalate, HISA could ask the Federal Trade Commission (FTC) to restrict simulcasting. This means only those physically present at the racetrack would be able to wager on races, including the Kentucky Derby.

CDI claimed "mischaracterization" and pushed back against the regulator’s claims. The company said it would “not accept HISA’s mischaracterization of our actions.”

“The Authority’s recent escalation reflects a troubling pattern of overreach that is harmful to the industry and inconsistent with the collaborative approach necessary to strengthen the sport,” CDI added.

In December 2024, CDI sued HISA over similar enforcement threats against its racing operations. The lawsuit alleges the fees were “illegally imposed” and violate the U.S. Constitution and the Administrative Procedure Act. The case is ongoing.

CDI contends that HISA revised its fee-assessment formula from one based solely on the number of race starts conducted by operators to a 50-50 split between starts and purses. Because CDI offers larger purses than many competitors, the company argues it is disproportionately affected under the revised structure.