NYRA and HISA settle dispute over fee assessments

The New York Racing Association and the Horseracing Integrity and Safety Authority reached a settlement of their dispute regarding HISA’s fee assessment methodology.

As a result of the settlement, NYRA will withdraw from the litigation pending in the western district of Kentucky and HISA will withdraw the enforcement action initiated against NYRA on Nov. 13.

Terms of the settlement were not disclosed in a NYRA news release, and a HISA spokesperson said they are confidential. Churchill Downs Inc. also was involved in the dispute, but the motion for dismissal does not affect claims made by CDI.

"We did not participate in the settlement discussions between HISA and NYRA," Tonya Abeln, CDI vice president of communications for CDI, said in an email. "It is of the utmost importance not just for CDI, but for every participant in the horse industry that HISA act responsibly, fairly and in a manner consistent with the law and the constitution. Our lawsuit will continue forward."

In the news release, NYRA president and CEO David O'Rourke said, “HISA’s ongoing work and overall mission are critically important to the future of thoroughbred horse racing. “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.”

“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,” HISA CEO Lisa Lazarus said. “However, we are delighted to move forward and to resume our strong partnership grounded in the principles of horse welfare and sporting integrity.”

NYRA and Churchill Downs Inc. combined legal forces to sue the Horseracing Integrity and Safety Authority last month in Western Kentucky federal court.

CDI and NYRA claimed that HISA broke its own rule that says racetracks and their operators would be charged a fee based on the number of starts they host in a given year. The lawsuit said fees actually are based 50% on purses and 50% on starts. Big purses at Churchill and New York tracks then have raised fees illegally, according to the plaintiffs. Read more here.

After the lawsuit was filed, HISA said about 7% of its annual budget ws being held up in a $5.8 million fee dispute with NYRA and CDI. The authority said NYRA was $3.9 million behind on its payments and CDI $1.9 million. Read more here.