Churchill Downs Issues Statement Regarding Beef With HISA

[Wandering Eyes]

In response to allegations from HISA that Churchill Downs owes the organization $2.4 million in fees, Churchill Downs responded with a statement Thursday in which it said it does not “accept HISA's mischaracterization of our actions” and rebuffed any suggestions that Churchill Downs and its affiliate tracks are not fully committed to safety and integrity.

The statement read: “Churchill Downs Incorporated remains fully committed to the safety and integrity of Thoroughbred racing. Any suggestion that the company is not supporting safety efforts is inaccurate. Churchill Downs has invested significantly in safety initiatives, enhanced protocols and regulatory compliance across our racetracks and will continue to do so.

“While we do not comment on pending legal proceedings, we will not accept HISA's mischaracterization of our actions. The Authority's recent escalation reflects a troubling pattern of overreach that is harmful to the industry and inconsistent with the collaborative approach necessary to strengthen the sport.

“We had no prior notice and received HISA's letter minutes before the Joe Drape article was published, which is another clear example of their poor judgment and questionable intentions in interacting with industry participants who do not blindly submit to their demands.”

The dispute between Churchill and HISA went public when a story written by Joe Drape appeared Wednesday in the New York Times. The Times wrote that 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 fees it owes HISA. HISA released a notice of violation to Churchill for “failure to remit fees” under federal law.

HISA charges racetrack operators fees that pay for such things as drug testing, data on veterinarian reviews and safety inspections of the tracks. In a complaint filed to its board on Wednesday, HISA went so far as to accuse Churchill of “freeloading” because it had not been paying the fees while using the many services that HISA provides to all tracks under its jurisdiction.

“I've tried for over a year to just get them to pay us that 2025 amount,” HISA CEO Lisa Lazarus told the Louisville Courier-Journal. “For reasons I don't understand–because they always paid in the past, and now they just refuse to–so we had no choice but to take this action because we can't operate without the assessment fees. They are responsible for paying on four racetracks and haven't paid on any. That starts to add up over the year.”

HISA has scheduled a Mar. 11 hearing.

At stake may be Churchill's ability to offer wagering on its products, including the Kentucky Derby. HISA has the right to pull simulcasting signals when it feels tracks are not in compliance with its regulations.

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