LOUISVILLE, Ky. — Churchill Downs Incorporated has sued the Horse Racing Integrity and Safety Authority over fees the track is being charged by the organization.
CDI was joined by the New York Racing Association in the suit filed Wednesday, Dec. 4 in Western Kentucky Federal Court. They argue they are being overcharged by HISA.
CDI and NYRA say fees owed were supposed to be based on the number of starts, but say HISA illegally changed the fee to a formula that is half based on purses, which means tracks owned by CDI and NYRA owe a lot more.
CDI refused to make a nearly $2 million payment and sued.
In a statement, HISA said, “CDI and NYRA have both benefited greatly from HISA’s uniform safety rules, expertise and oversight, particularly over the past two years. That uniformity must extend to cost assessments as well. To do otherwise would be unfair to other tracks and industry participants who are paying their fair share. HISA will continue to uphold the standards of the sport with integrity and fairness for all racing participants. Our mission is clear, and we will not allow any parties to pick and choose which rules they follow. Every racetrack, including CDI and NYRA, must operate under the same paradigm. No one is exempt.”
A CDI spokesperson said, “We are deeply disappointed to be put in a position where we must file a lawsuit to protect our rights, but the actions undertaken by HISA are grossly inconsistent with the law and our constitutional rights.”
NYRA Vice President of Communications, Patrick McKenna sent Spectrum News 1 a statement Friday. It said, “This lawsuit narrowly targets the unlawful, excessive, and disproportionate financial assessments that HISA’s authority is attempting to impose on NYRA. Since 2022, NYRA has disputed HISA's methodology for calculating fees, which is based on a blended rate of starts and purses, as opposed to methodology required by statute based purely on starts. NYRA joined in this action as a last resort only when threatened with illegal HISA enforcement actions.”