The Horseracing Integrity and Safety Authority (HISA) has initiated enforcement proceedings against Churchill Downs Inc. (CDI), alleging that the company owes $5.6 million in unpaid assessment fees for 2025, potentially jeopardizing betting activities related to the Kentucky Derby.

The federal racing authority claims that the Louisville-based organization has neglected to remit its annual assessment dues, which are essential for financing national anti-doping measures and safety oversight associated with Churchill Downs Racetrack.

A hearing is set for March 11, organized by a panel from HISA. This session will focus on CDI’s alleged refusal to contribute “even a penny” towards assessments pertinent to Turfway Park, Ellis Park, and Presque Isle Downs, as noted in the hearing notification.

HISA contends that CDI has consistently benefited from regulatory services and asserts that this behavior exemplifies “freeloading.”

The authority has cautioned that the operator might face a ban on conducting any covered horse races for each day the outstanding amount remains unpaid. This restriction would be activated on the track’s next scheduled race days.

If tensions escalate, HISA could petition the Federal Trade Commission (FTC) to limit simulcasting. This would restrict betting to those physically present at the racetrack, including for events like the Kentucky Derby.

CDI has countered these claims by alleging “mischaracterization” and emphasized that it does “not accept HISA’s mischaracterization of our actions.”

“The recent escalation from the Authority indicates a concerning trend of overreach that adversely impacts the industry and contradicts the collaborative approach needed to enhance the sport,” CDI remarked.

In December 2024, CDI filed a lawsuit against HISA over similar enforcement threats regarding its racing activities. This lawsuit asserts that the fees were “illegally imposed” and infringe upon the U.S. Constitution and the Administrative Procedure Act. The case is still ongoing.

CDI argues that HISA has altered its fee-assessment methodology from one solely reliant on the number of race starts to a 50-50 division between starts and purses. Since CDI offers larger purses compared to many of its competitors, the company claims that it is disproportionately impacted by the modified structure.