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Churchill Downs calls for FTC review of horse racing regulator HISA

Our write-up of a story first reported by NEXT.io

Churchill Downs calls for FTC review of horse racing regulator HISA

Churchill Downs has asked the US Federal Trade Commission to order an independent review of the Horseracing Integrity and Safety Authority, citing transparency failures, governance issues and technology security gaps.

CEO William Carstanjen signed the letter on 28 August. Churchill Downs owns Churchill Downs Racetrack, home of the Kentucky Derby, and the TwinSpires betting platform. The letter references two incidents: a series of unusual race results and suspicious betting activity tied to horses from Fair Hill Training Center (the "Fair Hill Five"), and unauthorised access to confidential veterinary records via the HISA Portal. The regulator accused Marshall Gramm of rule violations including fraud.

In the Fair Hill case, HISA concealed a positive test for a banned substance for over a month and disclosed it only after the betting episode became public. HISA chair Lisa Lazarus initially denied the leak came from the portal. On 15 June she told Thoroughbred Daily News the screenshots could not have originated from HISA's system. The regulator later confirmed otherwise.

Churchill Downs said HISA focused on charges against Gramm but did not explain how the access occurred, how long the vulnerability existed, or whether other users viewed similar data. HISA is funded by mandatory track assessments. Since its formation the industry has spent over $250 million on the regulator, roughly 12% of it on technology.

Carstanjen said the company is ready to assist the commission and support a review that delivers answers to the industry, the betting public and all market participants.

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