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 related to 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 contend these fees are illegally imposed and violate both the U.S. Constitution and Administrative Procedure Act.

The dispute centers on HISA's revised fee calculation method, which now splits the assessment equally between race starts and purse amounts. The plaintiffs argue this new formula disproportionately affects them due to their higher prize offerings.

HISA defends its position, stating the Federal Trade Commission has approved the assessment methodology. The organization maintains the fees are necessary to fund its Anti-Doping and Medication Control Program and Racetrack Safety Program effectively.

The lawsuit also challenges HISA's authority to act as both regulator and judiciary. CDI and NYRA contend that HISA's internal enforcement process violates Article III of the U.S. Constitution, arguing such matters should be handled by federal courts.

HISA, established under the Horseracing Integrity and Safety Act of 2020, implements nationwide safety standards for horse racing. While designed to standardize industry practices, the organization has faced resistance from state racing commissions concerned about increased testing costs and lack of federal funding support.

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