Churchill Downs Inc (CDI) and the New York Racing Association (NYRA) have filed a lawsuit against the Horseracing Integrity and Safety Authority (HISA) over threatened racing bans due to unpaid fees totaling nearly $5 million.

According to the lawsuit, HISA has given the racetrack operators 20 days to pay the fees or face daily racing bans. CDI and NYRA claim these fees are illegally imposed and violate both the U.S. Constitution and the Administrative Procedure Act.

The dispute centers on HISA's recent change in fee assessment methodology. Previously based solely on the number of race starts, the new calculation is split 50-50 between starts and purses. The plaintiffs argue this disproportionately affects them due to their higher prize money offerings.

HISA defends its position, stating the Federal Trade Commission has approved the assessment methodology. The agency maintains the fees are necessary to fund its Anti-Doping and Medication Control Program and Racetrack Safety Program effectively.

The lawsuit also challenges HISA's authority to act as both regulator and judiciary. CDI and NYRA contend that HISA's in-house enforcement process violates Article III of the U.S. Constitution, arguing such matters should be decided in federal court.

HISA, established under the Horseracing Integrity and Safety Act of 2020, is a private self-regulatory organization responsible for implementing nationwide safety standards in horse racing. The organization has faced resistance from state racing commissions concerned about increased testing costs and lack of federal funding support.

HISA has stated it will "aggressively defend itself" against the litigation and the companies' attempts to avoid paying their "fair share" of fees.

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