Churchill Downs (CDI) has published a statement following the recent ruling at the United States District Court for the Western District of Kentucky.
The courts ruled that the Horseracing Integrity and Safety Authority (HISA) acted in a way that was arbitrary and capricious, and so its efforts to collect fees from Churchill Downs were unlawful.
Bill Carstanjen, CDI CEO, said: “We are pleased with the Court’s decision in our favor.
“It’s unfortunate that HISA wasted so much time and resources, forcing us to go to such lengths to prove a very clear point. This is indicative of HISA’s ongoing fiscal mismanagement, which is a distraction from our joint mission of equine health and safety.
“By finding that HISA continuously exceeded its authority, the Court reiterated why it was necessary to bring this legal action.”
However, it seems that this ruling is not as clear-cut as it seems.
The case stretches back to 2023, when seven horses died at Churchill Downs, including two that died in the hours leading up to the main Kentucky Derby event.
An additional five horses sustained fatal injuries during the races, marking the Sprint Meet as one of the deadliest in horseracing history.
The HISA claimed that CDI was not paying the appropriate fees to protect the riders and horses, particularly in regard to paying for drug testing, data on veterinarian reviews and safety inspections of the tracks.
Lisa Lazarus, HISA CEO, said in an interview at the time: “For more than a year, we’ve worked in good faith to reach a resolution, but our responsibility is to the broader industry.
“We are duty-bound to treat all of our constituents the same, and the 37 other racetracks operating under HISA should not be asked to subsidize Churchill Downs.
“We’ve unfortunately been left with no choice but to proceed with this enforcement action.”
However, the courts seemed to make a very specific ruling on the case.
Federal Judge Benjamin Beaton ruled that the purse-based fee model that was used between 2022 and 2024 was unlawful, because the law requires fees to be based on “racing starts,” not purse size.
And while the case is dismissed, there are reports that CDI made an out-of-court, undisclosed payment to HISA.
There are no details as to how much of the $6.3m bill was paid, and it seems unlikely that the amount will be published.
A HISA spokesperson said, regarding the decision: “It rejects a prohibition on using factors beyond racing starts in fee assessments, rejects Churchill’s equitable and contract-based theories and declines to vacate the prior purse-weighted assessment rule.
“Instead, it orders limited declaratory relief to Churchill for past years only based on the Federal Trade Commission’s failure to adequately explain its approval (to change the fee formula).
“As the industry moves forward under the racing-starts-only rule that went into effect in 2026, HISA remains focused on advancing its safety and integrity mission.”
The 2026 Kentucky Derby will be held on 2 May and will be the 152nd event
