Kentucky Derby Operator Accused of Regulatory 'Freeloading'

Horseracing Integrity and Safety Authority files complaint against Churchill Downs Inc. over unpaid fees

Published on Feb. 21, 2026

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The Horseracing Integrity and Safety Authority (HISA) has filed a complaint against Churchill Downs Inc., the company that hosts the Kentucky Derby, accusing it of refusing to pay its fair share of fees that support inspections, testing, and safety measures for the sport. HISA is threatening to shut down out-of-state betting on races at Churchill Downs and three other tracks it owns unless the company pays $2.4 million in overdue fees.

Why it matters

The dispute highlights the ongoing tensions between racetracks and the new regulatory body created to improve safety and integrity in horse racing. HISA's regulations and enforcement have been credited with reducing thoroughbred racing fatalities, but some tracks like Churchill Downs argue the fees are unfair and disproportionate. The outcome could have major financial implications for Churchill Downs, which relies heavily on out-of-state wagering.

The details

According to the complaint, Churchill Downs has only partially paid its 2023 and 2024 assessments, and now owes $6.3 million plus interest for 2025. HISA is initially seeking the $2.4 million based on Churchill's preferred formula, but the authority has changed its formula to weight the number of starts more heavily. Both sides will have a chance to argue their cases before HISA's board, and the dispute could ultimately be decided by the Federal Trade Commission, which oversees the regulatory body.

  • In 2023, seven horses died during the week of the Kentucky Derby at Churchill Downs.
  • In the days after the 2023 Kentucky Derby, five more horses sustained fatal injuries at Churchill Downs.
  • In 2024, Churchill Downs sued HISA in federal court over the 'disproportionate' financial assessments.
  • The HISA board hearing is scheduled for March 11, 2026.

The players

Horseracing Integrity and Safety Authority (HISA)

A private entity that functions as the industry's regulator, created to prevent horse racing fatalities and improve safety and integrity in the sport.

Churchill Downs Inc.

The company that hosts the Kentucky Derby and owns three other racetracks.

Lisa Lazarus

The chief executive of HISA.

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What they’re saying

“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.”

— Lisa Lazarus, Chief Executive, Horseracing Integrity and Safety Authority

What’s next

Both sides will have an opportunity to argue their cases before three members of the HISA board at a hearing scheduled for March 11, 2026. Each side can appeal to the full HISA board or directly to the Federal Trade Commission, which oversees the regulatory body.

The takeaway

This dispute highlights the ongoing tensions between racetracks and the new regulatory body created to improve safety and integrity in horse racing. The outcome could have major financial implications for Churchill Downs, which relies heavily on out-of-state wagering, and could set a precedent for how HISA enforces its regulations across the industry.