Full Breakdown
Churchill Downs Faces Legal Action Over HISA Fees Amid Safety Concerns
2/19/2026, 5:06:16 AM
Overview of the Dispute
In 2023, Churchill Downs, the host of the Kentucky Derby, experienced a tragic series of events when seven horses died during its Spring Meet, marking one of the deadliest periods in horse racing history. In response to these fatalities, the Horseracing Integrity and Safety Authority (HISA) was established to enhance safety measures in the industry. However, HISA has now filed a complaint against Churchill Downs Inc. (CDI) for allegedly failing to pay $2.4 million in fees owed for services rendered in 2025.
Background on HISA and Its Role
HISA was created to regulate horse racing and ensure the safety of both horses and riders. The authority charges racetrack operators fees that fund drug testing, veterinarian reviews, and safety inspections. HISA claims that Churchill Downs is "freeloading" by utilizing these services without fulfilling its financial obligations. Lisa Lazarus, HISA’s chief executive, emphasized the need for equitable treatment among racetracks, stating, “We are duty-bound to treat all of our constituents the same.”
Legal Proceedings and Financial Implications
The complaint, filed with HISA's board, seeks a hearing on March 11, 2026. It comes after a legal dispute initiated in late 2024, when CDI and the New York Racing Association (NYRA) contested HISA's fee structure, arguing it unfairly burdened tracks with larger purses. HISA's complaint indicates that CDI has not responded to any invoices issued throughout 2025, and it estimates that CDI's tracks owe approximately $5 million in total dues for that year.
If HISA's board rules in favor of the authority and CDI fails to comply with the payment, HISA has the power to block the sale of CDI's simulcast signals to out-of-state tracks, significantly impacting its revenue streams.
Financial Context of Churchill Downs
Despite the ongoing legal issues, CDI reported a net income of $331.7 million on total revenue of $2.26 billion for the first nine months of 2025, which includes all its business operations. This financial backdrop raises questions about the company's refusal to pay the owed fees, especially as HISA continues to provide essential services.
Criticism and Opposition
Critics of HISA's funding mechanism argue that it disproportionately affects smaller tracks and horsemen in states with fewer resources. The authority's fee structure has faced legal challenges, including a lawsuit from Iowa horsemen who claimed that HISA could not delegate fee levying to a private entity. This ongoing tension highlights the complexities of funding safety measures in horse racing.
What's Next
The upcoming hearing on March 11, 2026, will be crucial in determining the outcome of HISA's complaint against CDI. The decision could have significant implications for the financial responsibilities of racetracks under HISA's jurisdiction and the overall safety measures in the horse racing industry.
Verbatim Quotes
- “For more than a year, we’ve worked in good faith to reach a resolution, but our responsibility is to the broader industry,” — Lisa Lazarus, Chief Executive, HISA
- “The CDI racetracks stand alone among covered racetracks in refusing to make any HISA assessment payments whatsoever for 2025,” — HISA Complaint
This situation underscores the ongoing challenges in balancing financial obligations with the imperative of ensuring safety in horse racing.
