U.S. Supreme Court grants stay, keeping HISA rules in place, for now

The Supreme Court on Monday granted a stay of a mandate from the U.S. Fifth Circuit Court dealing with the constitutionality of the Horseracing Integrity and Safety Authority, a decision that keeps HISA’s rules in place in most racing jurisdictions in the U.S.

The ruling, which was sought by HISA and its supporters, nearly ensures that the Supreme Court will take up the issues at the core of the Fifth Circuit case and a separate ruling from the U.S. Sixth Circuit during its current session, which runs through the summer of 2025.

While both courts ruled in the past two years that HISA’s rule-making authority is constitutional, the Fifth Circuit decision held that HISA’s enforcement powers violated the so-called non-delegation doctrine of the U.S. Constitution, which limits the regulatory power that Congress can give to non-government agencies.

A statement from HISA said that the ruling will enable the authority to “continue to enforce [its enabling legislation] and its rules in every racing jurisdiction where HISA is currently operative.”

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“In other words, the status quo will remain until the Supreme Court issues a final decision sometime before the end of its term in June, 2025,” the statement said. “The Authority is pleased to continue its mission of improving the safety and integrity of horse racing without interruption (or further intervening litigation).”

Specifically, the Supreme Court ruling stays an element of the Fifth Circuit decision mandating that a lower court reconsider its decision upholding HISA’s enabling legislation in light of its own ruling holding portions of the legislation unconstitutional. In the ruling, the Supreme Court said the stay will be lifted if it denies petitions from HISA and its federal overseer, the FTC, to consider the Fifth Circuit ruling and the contrary opinion from the Sixth Circuit.

HISA currently has legal jurisdiction in every major racing state except Louisiana and West Virginia, where courts have issued stays against its enforcement after considering suits brought by horsemen’s groups and state attorneys general. HISA’s rules are not being enforced in several other states, such as Nebraska and Texas, due to decisions by tracks not to send their signals out-of-state, thereby evading HISA’s jurisdiction.

The Fifth Circuit case was brought by the National Horsemen’s Benevolent and Protective Association, several groups in Texas opposed to HISA, and several racetrack owners with tracks in Oklahoma and Texas. The groups have argued that HISA’s enabling legislation is unconstitutional on several grounds.

Outside the litigation, the National HBPA has criticized HISA’s funding formulas and the expense of its programs; HISA’s rules on medication and drug use; and its adjudication process.

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