Imagine a major player in the horse racing industry being accused of freeloading, leveraging benefits without footing the bill. That’s exactly what’s happening between the Horse Racing Integrity and Safety Act (HISA) Authority and Churchill Downs Incorporated (CDI), the powerhouse behind iconic tracks like Churchill Downs in Louisville. But here’s where it gets controversial: HISA is threatening to shut down CDI’s racing operations unless they pay over $2.4 million in allegedly overdue assessment fees for 2025—plus interest. And this isn’t just about one year; CDI is also accused of shortchanging HISA for 2023 and 2024, adding another $1.7 million to the dispute.
On Wednesday, HISA summoned CDI to a March 11 hearing before a panel of its board members, demanding payment within 10 days of any order issued. If CDI fails to comply, HISA warns that Churchill Downs and its other tracks—Turfway Park, Ellis Park, and Presque Isle Downs—could be barred from hosting races, starting with the very next scheduled race day. The hearing notice bluntly labels CDI as ‘freeloading,’ claiming the company enjoys HISA’s services—like drug testing, track inspections, and safety technology—without contributing its fair share.
And this is the part most people miss: CDI isn’t just refusing to pay; it’s challenging HISA’s entire assessment methodology in federal court. In a lawsuit filed in December 2024, CDI argues that HISA overstepped its authority by threatening to halt races over unpaid fees. According to CDI, the HISA Act requires such disputes to be settled in federal court, not by HISA’s own administrative process. CDI also claims HISA’s fee structure violates due process and constitutional principles, as it allows HISA to act as both judge and jury in fee disputes.
HISA counters that CDI owes the money regardless of the ongoing litigation. In the hearing notice, HISA states it’s seeking payment based on CDI’s own proposed assessment formula—a calculation CDI itself endorsed in its lawsuit. HISA argues that even if CDI wins its legal battle, it would still owe the exact amount demanded in this enforcement action.
The situation is further complicated by CDI’s alleged refusal to pay any 2025 assessments, despite continuing to benefit from HISA’s services. HISA accuses CDI of promoting HISA’s benefits to investors while failing to contribute financially, a move HISA calls unfair and unsustainable.
As the March 11 hearing approaches, chaired by Joe De Francis with Bill Thomason and Terri Mazur on the panel, CDI has until February 27 to file objections. HISA’s enforcement counsel can respond by March 6. But here’s the real question: Is CDI justified in challenging HISA’s authority, or is it simply dodging its financial responsibilities?
This high-stakes showdown raises broader questions about the balance of power in horse racing regulation. Should private entities like HISA have the authority to enforce fee payments and penalize non-compliant tracks? Or should such disputes be left to the courts? Let us know your thoughts in the comments—this debate is far from over.
