HISA Targets Churchill Downs in $5.6M Fight That Could Impact Kentucky Derby Betting
Posted on: February 23, 2026, 03:59h.
Last updated on: February 23, 2026, 03:59h.
- HISA seeks $5.6 million in alleged unpaid fees
- Churchill Downs denies wrongdoing, calls action regulatory overreach
- Dispute could affect simulcasting and Kentucky Derby wagering
The federal racing regulator has launched enforcement action against Churchill Downs Inc., alleging $5.6 million in unpaid fees – a dispute that could threaten betting on the Kentucky Derby.
The Horseracing Integrity and Safety Authority (HISA) accuses the Louisville-based operator of failing to pay its 2025 assessment fees, which fund national anti-doping and safety oversight tied to Churchill Downs Racetrack.
The authority has scheduled a March 11 hearing before a board panel to address CDI’s alleged refusal to pay “one cent” for assessments related to Turfway Park, Ellis Park, and Presque Isle Downs, according to a February 18 notice of hearing.
HISA said CDI has continued to receive the benefit of its services and that its conduct “demonstrate[s] the nature of freeloading.”
The regulator warned that Churchill Downs could be barred from conducting any covered horseraces for each day the amount remains outstanding, with the prohibition taking effect on the track’s next scheduled race days.
If the dispute escalates, HISA could ask the Federal Trade Commission (FTC) to restrict simulcasting, meaning only those physically present at the racetrack could wager on races – including the Kentucky Derby, one of the largest single-day betting events in US racing.
CDI Claims ‘Mischaracterization’
In response to the complaint, CDI said it would “not accept HISA’s mischaracterization of our actions.”
“The Authority’s recent escalation reflects a troubling pattern of overreach that is harmful to the industry and inconsistent with the collaborative approach necessary to strengthen the sport,” the company added.
In December 2024, CDI sued HISA over similar enforcement threats against its racing operations. That lawsuit alleges the fees were “illegally imposed” and violate the U.S. Constitution and the Administrative Procedure Act. The case is ongoing.
CDI contends that HISA revised its fee-assessment formula, which had previously been based solely on the number of starts conducted by racetrack operators.
Under the new approach, fees are calculated on a 50-50 split between starts and purses. Because CDI offers larger purses than many of its competitors, the company argues it is disproportionately affected.
Industry Friction
HISA is a private, self-regulatory body created under the Horseracing Integrity and Safety Act, signed into law by President Trump in 2020. The legislation introduced uniform, nationwide safety and anti-doping standards for Thoroughbred racing, replacing a patchwork system in which oversight had long been handled by individual states. HISA was established to administer and enforce those new rules.
The reforms have drawn resistance from some tracks and state racing commissions who are accustomed to operating independently. Critics argue that the stricter testing and compliance requirements are costly and, because the Act provides no direct federal funding, those expenses are ultimately passed on to racetracks and other industry stakeholders.
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