Supreme Court Takes Action in Case That Could Upend Horse Racing

The U.S. Supreme Court has temporarily blocked a ruling by the Fifth Circuit Court of Appeals that declared the enforcement rules of the Horseracing Integrity and Safety Authority (HISA) unconstitutional, preventing immediate disruption to the multibillion-dollar horse racing industry.

HISA, which was created to establish uniform safety standards across the U.S. racing industry, plays a key role in overseeing the safety of both horses and jockeys. The sport, which generates $3.6 billion annually according to Statista, has been under scrutiny for high-profile horse fatalities and inconsistent regulations across states.

Congress established HISA in 2020 to address these concerns, providing a national regulatory framework to ensure safer racetrack conditions and antidoping standards.

Fully implemented in May 2023, HISA is under the oversight of the Federal Trade Commission (FTC).

However, the Fifth Circuit recently ruled that HISA's enforcement powers violated the private non-delegation doctrine, which limits Congress from delegating regulatory authority to private entities without sufficient oversight. The ruling, if allowed to take effect, could unravel the safety measures HISA has implemented since its inception.

Supreme Court Justice Samuel Alito 's temporary stay delays the enforcement of the Fifth Circuit's ruling, giving the high court time to consider whether it will fully review the case. HISA's legal team argues that without this stay, the industry would face "irreparable harm," including increased horse fatalities and regulatory chaos as the sport reverts to state-by-state oversight.

Alito's order requires the National Horsemen's Benevolent and Protective Association, which along with affiliates persuaded the Fifth Circuit Court of Appeals to rule against HISA, to file a response to the application by September 30.

The Fifth Circuit's decision conflicts with a ruling from the Sixth Circuit Court of Appeals, which upheld HISA's constitutionality after Congress amended the law to provide the FTC more oversight over the authority's rulemaking. These judicial split raises significant constitutional questions and increases the likelihood that the Supreme Court will ultimately take up the case.

HISA supporters argue that the organization has been essential to safeguarding the industry's future by reducing fatalities and improving the overall integrity of the sport. They highlight a 38 percent decline in equine fatalities during the first quarter of 2024, attributing this positive change to HISA's uniform standards.

In addition to these results, proponents draw comparisons to the success of other private regulatory bodies, such as the Financial Industry Regulatory Authority (FINRA), which courts have upheld as constitutional.

Supporters further contend that HISA has helped prevent "irreparable harm" to the horse racing industry. Without its oversight, they warn, the sport could revert to inconsistent state regulations, increasing risks for both horses and jockeys.