New York Racing Authority, Churchill Downs sue federal racing authority over pay dispute

The nation’s first federal horse racing regulator is being sued by two state-level racing organizations.

The Horseracing Integrity and Safety Authority is facing a suit from the New York Racing Association and Churchill Downs Incorporated.

NYRA spokesman Pat McKenna said in a statement that while his organization is supportive of HISA’s oversight, the lawsuit filed Wednesday “narrowly targets the unlawful, excessive, and disproportionate financial assessments that HISA’s authority is attempting to impose on NYRA.” He adds that NYRA turned to the suit as a “last resort” when “threatened with illegal HISA enforcement actions.”

The suit alleges that HISA unlawfully adopted an assessment method that calculates fees based on a racetrack’s total purses, rather than a state’s share of racing starts.

According to the suit HISA is seeking almost $4 million from NYRA with threats to halt covered racing at Aqueduct, Belmont, and Saratoga Race Course until the payment is made.

Churchill Downs has been directed to pay nearly $2 million.

The Assessment Methodology Rule at the center of the case was approved by the Federal Trade Commission.

In a statement, HISA says NYRA and Churchill are the only two racing organizations that have not complied, adding it “will not allow any parties to pick and choose which rules they follow.”