U.S. Supreme Court Upholds HISA's Constitutionality

For many years now, the U.S. horse racing industry has been operating to clean the industry up. Leaders within the industry have long believed that the loss in customer participation has been due in large part to the suspicion of impropriety within the industry.

In late 2022, the Federal government stepped up and gave the industry a boost in its policing capabilities. They did that by establishing the Horseracing Integrity and Safety Authority (HISA). The agency was set up to create uniform rules and regulations that are intended to hold owners and trainers accountable for issues related to the horses under their control. The focus of many of these rules and regulations has been directed at enforcing a national medication and drug-testing program.

To say that HISA has not been well-received by U.S. horsemen would be an understatement. These are experienced owners and trainers who believe the industry is capable of policing itself. It was the combined efforts of several major groups that led to a challenge of HISA's constitutionality. That challenge was made almost immediately after HISA's creation.

The Original Challenge

The initial challenge went to the U.S. Fifth Circuit Court of Appeals where the court ruled that HISA's creation and authority were constitutional. That decision was appealed to the U.S. Sixth Circuit Court of Appeals. The Sixth Circuit ruled that HISA's formation and authority were unconstitutional due to non-delegation clauses in the Constitution. The higher court suggested the lower adjust its ruling in late 2022, which the court did by clarifying that HISA's overseer, the Federal Trade Commission, would have broader rule-making authority. This time, the Sixth Circuit Court ruled in HISA's favor.

On to the U.S. Supreme Court

With one appeal remaining, three states and their horse racing regulatory agencies pressed on with an appeal to the U.S. Supreme Court (SCOTUS). Those three states were Oklahoma, Louisiana, and West Virginia, two of which (Louisiana and West Virginia) were still operating outside of HISA's authority due to prior legislation.

On June 24, 2024, the SCOTUS announced they were declining to hear the appeal. In doing so, they solidified HISA's creation and authority to oversee portions of the U.S. horse racing industry.

This was a big win for HISA's management. However, there is still a pending case before the Fith Circuit Court that needs to be resolved. That case addresses a pending case that involves Louisiana and West Virginia's relationship with HISA. Still, HISA is celebrating the Supreme Court's decision. In a press release, Charles Scheeler, the chairman of HISA, stated he is "pleased with the final decision. He further addressed other pending cases against HISA with this statement:

“It is long past time for opponents of HISA to drop their outstanding lawsuits. In light of this decision, continued litigation only serves to take time and valuable resources away from our core mission of improving the safety and integrity of Thoroughbred racing.”

How does this affect horseplayers who are the heart of the U.S. horse racing industry? The hope is the existence of HISA will give them faith that horse racing in America is headed in the right direction.