Kentucky Derby Betting Faces Uncertainty as Churchill Downs and HISA Clash
The road to the 152nd Kentucky Derby could be significantly altered for bettors across the nation. A dispute between Churchill Downs Incorporated (CDI) and the Horseracing Integrity and Safety Authority (HISA) over assessment fees has escalated, potentially limiting where and how fans can wager on the iconic race.
The Core of the Dispute: Millions in Unpaid Fees
HISA is seeking $2.4 million in unpaid fees from Churchill Downs, representing 1/10th of 1% of the company’s total revenue. This isn’t simply a disagreement over an amount; it’s a fundamental clash over how those fees should be calculated. HISA argues for a methodology combining race starts and purses, while Churchill Downs has historically based its payments solely on the number of race starts.
The conflict began when Churchill Downs stopped making payments in 2025, following previous years of compliance with the starts-based methodology. Churchill Downs maintains its commitment to safety and integrity within thoroughbred racing, stating any suggestion otherwise is inaccurate. They’ve invested significantly in safety initiatives and regulatory compliance.
What’s at Stake: Simulcasting and Wider Industry Impact
The most immediate threat is to simulcasting – the ability to broadcast and accept bets on races from locations outside the host track. HISA CEO Lisa Lazarus has stated that if Churchill Downs doesn’t cooperate and pay the fees, HISA may seek to prevent the simulcast of the Derby. This would drastically restrict betting to only those physically present at Churchill Downs or other Kentucky racetracks.
The ramifications extend far beyond convenience. Hundreds of thousands of bettors who typically wager online or through sports-wagering apps would be excluded. A halt to simulcasting would impact betting on all races at CDI-owned tracks – Churchill Downs, Ellis Park, Presque Isle Downs and Turfway Park – affecting handle (total wagering turnover) by potentially hundreds of millions of dollars.
A Legal Battle and Industry Criticism
Churchill Downs responded to HISA’s demands with a federal lawsuit in December 2024, alleging that the authority’s fee structure is “unlawfully demanded.” The lawsuit also points to HISA’s “ever-increasing budget and fiscal mismanagement.” The New York Racing Association (NYRA) initially joined the lawsuit but later reached a settlement with HISA and withdrew.
The dispute highlights a broader power struggle between HISA, the federal regulator, and the established racing industry. Several horsemen have expressed surprise at HISA’s aggressive stance, but also acknowledge the underlying tension has been building for years.
HISA’s Role and Funding
Established by the 2020 Horseracing Integrity and Safety Act, HISA was created to standardize rules and enhance safety across the sport. Its responsibilities include overseeing medication usage, lab accreditations, racetrack safety programs, and injury prevention for both horses and jockeys. Funding for HISA comes from assessments levied on racetracks.
Can You Still Bet on the Derby?
As of now, simulcasting remains in place, meaning bettors can still wager on races at Churchill Downs from anywhere. Although, the situation is fluid and subject to change pending the outcome of the legal proceedings and potential negotiations between HISA and Churchill Downs. Industry observers believe a resolution will be reached, but the exact terms remain uncertain.
Did you know?
HISA’s 2024 revenue increased by approximately $7 million compared to the previous year, while its expenses rose by about $13 million.
FAQ
Q: What is simulcasting?
A: Simulcasting is the broadcasting of live horse races to off-track betting facilities and allowing bettors to wager on those races remotely.
Q: What is “handle” in horse racing?
A: Handle refers to the total amount of money wagered on races, impacting payouts to owners, trainers, and jockeys.
Q: What does HISA do?
A: HISA oversees medication usage, lab accreditations, racetrack safety, and injury prevention in horse racing.
Q: What is the amount Churchill Downs owes HISA?
A: HISA is seeking $2.4 million from Churchill Downs, representing 1/10th of 1% of the company’s total revenue.
Stephanie Kuzydym is an enterprise and investigative sports reporter. Reach her at [email protected].
