Lawsuit claims fees are illegal
Two of the largest horse racing organizations in the US have sued the young regulatory body that is charged with overseeing the sport.
Churchill Downs, Inc., the owner of the legendary racetrack of the same name, and the New York Racing Association (NYRA), operator of Aqueduct Racetrack, Belmont Park, and Saratoga Race Course, filed a federal lawsuit last week against the Horseracing Integrity and Safety Authority (HISA).
a “threat” by HISA to forbid them from holding races until they pay HISA’s required fees
They make several claims in their complaint, but the biggest one is what they see as a “threat” by HISA to forbid them from holding races until they pay HISA’s required fees.
Churchill Downs and NYRA contend that the “millions” in fees are “illegally imposed.” Specifically, HISA bases fees on winners’ prize money instead of a state’s proportion of races. That HISA was created as a national regulatory body, thus dealing a blow to individual states’ autonomy, has also been a sticking point for Churchill Downs and NYRA.
HISA steadfast in its mission
In a statement issued last Thursday, HISA said that Churchill Downs and NYRA “have refused to comply with the Assessment Methodology Rule, as approved by the Federal Trade Commission,” adding that they are “the only two racing organizations subject to this rule that have refused to remit their share of fees.”
HISA CEO Lisa Lazarus explained that the Assessment Methodology Rule is “designed to ensure HISA is adequately funded and able to effectively oversee the Anti-Doping and Medication Control Program and the Racetrack Safety Program, as required under the Horseracing Integrity and Safety Act.”
we will not allow any parties to pick and choose which rules they follow”
Calling the lawsuit “meritless,” Lazarus concluded: “Our mission is clear, and we will not allow any parties to pick and choose which rules they follow. Every racetrack, including CDI and NYRA, must operate under the same paradigm. No one is exempt.”
Private organization with governmental clout
HISA was created under the Horseracing Integrity and Safety Act of 2020; its board of directors was installed in May 2021.
The goal of the Authority is to bring national regulation to an industry that had previously been regulated by individual states. More specifically, HISA develops and enforces rules regarding racetrack safety (track surface, injury reporting, equipment, and more) and anti-doping and medication usage to protect the horses’ health.
One of the keys to legal challenges is that HISA is not a federal government agency, but is instead a private organization. The Fifth Circuit Court of Appeals ruled that the Horseracing Integrity and Safety Act was unconstitutional because it gave a private entity governmental powers. Congress then gave the Federal Trade Commission more control of HISA and the Sixth Circuit Court of Appeals ruled that the Act was constitutional.
Churchill Downs and NYRA aren’t the only ones to rebel against HISA. The Texas Racing Commission does not recognize HISA and both West Virginia and Louisiana still use state rules while they wait for legal cases to be resolved.