The Horseracing Integrity and Safety Authority has called a March 11 board panel hearing to address what it says is Churchill Downs Inc.'s refusal to pay millions of dollars in required assessments from four of its tracks. The meeting is the latest chapter in a dispute that involves a pending legal case between the parties.
Notices issued Feb. 18 set a remote hearing before a three-member panel, chaired by Joe De Francis with fellow board members Bill Thomason and Terri Mazur, to consider alleged violations tied to unpaid fees at CDI-owned tracks Churchill Downs, Ellis Park, Presque Isle Downs, and Turfway Park.
HISA is a federally authorized, private, self-regulatory organization created to establish and enforce uniform safety and integrity rules across most Thoroughbred racing in the United States.
Some states, such as West Virginia and Louisiana, are not subject to HISA jurisdiction due to ongoing federal lawsuits challenging its constitutionality and a preliminary injunction that exempts the states from its enforcement. CDI owns Fair Grounds Race Course & Slots in Louisiana—a property that was not cited for unpaid HISA assessments.
HISA fees were originally designed to be allocated based on projected racing starts, weighted by projected purse levels, but that approach drew criticism from CDI, the New York Racing Association, and other tracks that race for high purses, many of which have supplemental gaming.
CDI and NYRA sued HISA in late 2024, and shortly thereafter, the Federal Trade Commission—which oversees HISA—approved proposed modifications to HISA's assessment model, shifting it to a starts-only basis beginning this year. Those changes, while favorable to CDI and most major tracks, raise HISA costs for lower-tier racetracks with smaller purse levels and no gaming, such as Emerald Downs in Washington.
NYRA reached a settlement with HISA in early 2025 and withdrew from the lawsuit.
READ: Churchill, NYRA Sue HISA Alleging Illegal Assessments
READ: NYRA Reaches Settlement With HISA Over Track Fees
For 2025, HISA invoiced Churchill Downs more than $6.3 million under the approved formula, none of which has been paid, according to the authority's filings. Using a starts-only calculation, HISA says Churchill owes $2,408,501, plus nearly $94,000 in interest. HISA believes that regardless of how the federal court ultimately rules on the legality of its methodology, CDI owes at least the lower, starts-only amount being pursued. It says it reserves the rights to seek additional amounts later if the court upholds its original formula.
In 2023 and 2024, CDI calculated and paid full-year assessments using its own assessment formula, based solely on the number of racing starts. The total difference that remains currently due and owing from racetracks operated by CDI for the 2023 and 2024 assessments is $1,708,475. CDI's failure to pay the full amount of the 2023 and 2024 assessments is the subject of a separate pending Authority enforcement action.
For the 2025 calendar year, the following fees and interest have been assessed using the original methodology for the other CDI racetracks: Turfway owes $1,436,186 plus $56,051 in interest, Ellis Park owes $447,568 plus $17,467 in interest, and Presque Isle Downs owes $732,593 plus $28,591 in interest.
Officials from CDI declined to comment, citing corporate policy regarding matters involving litigation. But in its lawsuit filings, the operator argued that HISA's purse-based methodology exceeds congressional authority and raised concerns about the regulator adjudicating its own fee disputes. They also asserted that HISA threatened to suspend racing or simulcast wagering if assessments were not paid.
HISA maintains that the FTC-approved formula is lawful and necessary to fund laboratory testing, surface inspections, and enforcement operations.
In documentation for the upcoming board meeting, HISA wrote that "CDI even refuses to pay what it believes it owes for the CDI Racetracks under its own CDI Formula that is based solely on racing starts. The CDI Racetracks stand alone among Covered Racetracks in refusing to make any HISA assessment payments whatsoever for 2025. Yet the CDI Racetracks continue to receive millions of dollars in services from the Authority."
HISA has asked the board panel to direct CDI to pay the starts-only calculation to the Authority within 10 days of an order of the board panel. HISA further requests the board panel to order that if such payments are not received by the Authority by the required date determined in the order, that for each day the payment is late, "Churchill be prohibited from conducting any Covered Horserace, to be applied immediately on the next scheduled race day(s)."
Of the four CDI tracks cited for nonpayment, racing is currently taking place at Turfway Park in a meet lasting through late March. Churchill Downs begins racing in late April, one week before the May 2 Kentucky Derby (G1).
