Report: HISA fees may force closure of Emerald Downs

Increased fees imposed by the Horseracing Integrity and Safety Administration could force Emerald Downs to close next season.

The Seattle Times reported that HISA fees for the track are nearly doubling under a new calculation structure.

Emerald Downs president Phil Zieler told The Seattle Times that the increased rate is not sustainable.

Under the new structure, HISA fees will be based on the number of horses competing at each track rather than the number of horses and the amount of purse money page, the report noted.

The change was made after the New York Racing Association and Churchill Downs Inc. sued HISA in December, claiming that the agency 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. As a result, big purses at Churchill and New York tracks raised fees illegally, they alleged.

HISA fees for Emerald Downs would increase by 89%, according to The Seattle Times report, to $1.3 million from $712,000. That's before an annual credit for services provided by the Washington Horse Racing Commission, including post-race testing. This year's credit is $287,000, according to the report.

A HISA spokesperson did not respond to a request for comment.

Also, the WHRC is running out of money, according to the report, and could have a negative fund balance in March 2027 if revenues don't increase. The commission pays HISA fees, but that falls to the industry if the commission is unable to pay. Emerald Downs would be responsible for half, according to the report, with horse owners, trainers and jockeys paying the other half.

A bill in the state legislature to allow the WHRC to pay for HISA fees with equine-industry sales-tax revenue died in committee. But another bill is being pursued.