Published on: February 23, 2026, 03:59h.
Updated on: February 23, 2026, 03:59h.
- HISA demands $5.6 million for alleged unpaid assessments
- Churchill Downs refutes accusations, claims regulatory overreach
- The dispute may impact simulcasting and betting on the Kentucky Derby
The U.S. racing regulatory authority has initiated enforcement proceedings against Churchill Downs Inc., alleging that the company owes $5.6 million in fees. This conflict poses a potential risk to wagering activities surrounding the Kentucky Derby.
The Horseracing Integrity and Safety Authority (HISA) alleges that the Louisville-based entity has not paid its 2025 assessment dues, which are essential for national anti-doping and safety oversight associated with Churchill Downs Racetrack.
A hearing has been scheduled for March 11 to discuss Churchill Downs Inc.’s alleged refusal to remit any payment for assessments related to Turfway Park, Ellis Park, and Presque Isle Downs, as indicated in a notice dated February 18.
HISA asserts that CDI continues to benefit from its services while its actions exhibit a tendency toward “freeloading.”
The regulatory body has indicated that Churchill Downs might be prohibited from hosting any covered horse races for each day that the outstanding balance remains unpaid, with such restrictions to be enforced on the track’s upcoming race days.
If tensions escalate, HISA could petition the Federal Trade Commission (FTC) to limit simulcasting, meaning that only attendees at the racetrack would be able to place bets on races, including the Kentucky Derby, which is one of the most significant single-day wagering events in U.S. racing.
CDI Responds to Allegations
In reaction to the charges, CDI stated that it would “not endorse HISA’s misrepresentation of our actions.”
“The recent escalation from the Authority reflects a concerning trend of overreach that adversely affects the industry and contradicts the cooperative approach needed to enhance the sport,” the organization added.
In December 2024, CDI filed a lawsuit against HISA regarding similar enforcement threats to its racing operations. This ongoing litigation claims that the imposed fees were “illegally applied” and violate both the U.S. Constitution and the Administrative Procedure Act.
CDI argues that HISA altered its fee-assessment methodology, which initially relied solely on the number of races conducted by racetrack operators.
The revised formula now employs a 50-50 division based on both races and purses. Given that CDI offers higher purses than many competitors, the company argues this puts it at a disadvantage.
Tensions within the Industry
HISA is a private, self-governing body established under the Horseracing Integrity and Safety Act, enacted by President Trump in 2020. This law introduced standardized, nationwide safety and anti-doping regulations for Thoroughbred racing, eliminating the inconsistent approaches previously managed by individual states. HISA was created to manage and enforce these novel regulations.
The reforms have faced opposition from certain racetracks and state racing commissions who are accustomed to operating independently. Critics argue that the increased testing and compliance costs are burdensome and, as the Act does not provide direct federal funding, these expenses are ultimately borne by racetracks and other industry participants.