The New York Racing Association and the Horseracing Integrity and Safety Authority have reached a settlement on a lawsuit NYRA filed jointly with Churchill Downs Inc. centered on a dispute over the calculation of HISA’s assessments on racetracks, the two companies said on Thursday.
NYRA filed the suit with Churchill Downs early in December, with NYRA officials stressing that the dispute only involved the method by which HISA arrived at their assessments. The companies argued in their suit that HISA was violating its enabling legislation by using a weighted formula involving starts and purses that resulted in higher-profile tracks being assessed at a much higher per-start rate than lower-tier tracks.
Details of the settlement were not disclosed, although both sides said that as a result of the settlement, HISA would not pursue an “enforcement action” that could have resulted in NYRA being unable to send its simulcast signal out of state.
:: Bet with the Best! Get FREE All-Access PPs and Weekly Cashback when you wager on DRF Bets.
Financial statements on HISA’s website indicated that NYRA was $3.9 million in arrears on payments for the 2024 fiscal year at the time the joint suit was filed. The 2025 budget set NYRA’s assessment at $10.42 million, an amount that is split between the association and its horsemen.
“HISA’s ongoing work and overall mission are critically important to the future of Thoroughbred horse racing,” said David O’Rourke, NYRA’s chief executive, in a release. “NYRA is pleased to have reached this agreement, which resolves a narrow financial dispute and allows both parties to move forward in the best interests of the sport.”
In the release, NYRA said it would request to be withdrawn from the joint lawsuit filed in the District Court for the Western District of Kentucky, citing the settlement.
“From the start, NYRA has been an excellent partner to HISA and it is regretful that this financial issue caused a momentary hiccup in the relationship,” said Lisa Lazarus, HISA’s chief executive officer. “However, we are delighted to move forward and to resume our strong partnership grounded in the principles of horse welfare and sporting integrity.”
According to officials, Churchill remains in litigation, though settlement talks are believed to be ongoing. Churchill was $1.9 million in arrears at the time the suit was filed, for dues assessed on two of its Kentucky tracks.
According to HISA’s financial statements, tracks operated by NYRA and Churchill’s were assessed fees totaling roughly one-quarter of HISA’s $80 million 2025 budget, and any lingering dispute over the fees has the potential to put a serious strain on HISA’s budget in 2025.
The specific disagreement over the dues formula is now moot, considering HISA received approval one week ago to modify the formula so that it includes only starts, the approach NYRA and Churchill Downs were seeking. However, the modified rule will not go into effect until the 2026 fiscal year, and assessments will continue to be made on the weighted formula throughout 2025.
:: Want to learn more about handicapping and wagering? Check out DRF's Handicapping 101 and Wagering 101 pages.