The U.S. Supreme Court has temporarily halted a ruling by the Fifth Circuit Court of Appeals that struck down the enforcement rules of the Horseracing Integrity and Safety Authority (HISA) as unconstitutional, providing critical relief to the multibillion-dollar horse racing industry. HISA, which was created by Congress in 2020, is responsible for enforcing uniform safety and antidoping standards across the U.S., an industry plagued by inconsistent regulations and high-profile horse fatalities.
In recent years, horse racing has faced increased scrutiny due to a troubling rise in equine deaths and safety issues that have cast a shadow over the sport. According to Statista, the industry generates $3.6 billion annually, and the establishment of HISA was seen as a major step toward ensuring a safer environment for both horses and jockeys.
Fully operational as of May 2023 and under the oversight of the Federal Trade Commission (FTC), HISA aims to implement national safety measures, bringing much-needed consistency to the sport’s regulations.
However, the Fifth Circuit ruled that HISA violated the private non-delegation doctrine, which prevents Congress from delegating regulatory authority to private entities without proper oversight. This ruling, if left unchecked, would dismantle the regulatory framework HISA has painstakingly built, forcing the industry to revert to a patchwork of state regulations and raising concerns over the safety of participants.
In a critical move, Supreme Court Justice Samuel Alito issued a temporary stay, pausing the Fifth Circuit’s ruling and giving the Supreme Court time to consider whether it will fully review the case. HISA’s legal team has warned of “irreparable harm” to the industry if the Fifth Circuit’s decision were to take immediate effect, pointing to a likely increase in horse fatalities and regulatory chaos.
Alito’s order also requires the National Horsemen’s Benevolent and Protective Association (HBPA), the group that successfully challenged HISA’s constitutionality, to respond to the stay by September 30. The Fifth Circuit’s decision conflicts with a ruling from the Sixth Circuit Court of Appeals, which upheld HISA after Congress amended the law to give the FTC more direct oversight of its rulemaking. This judicial split heightens the possibility that the Supreme Court will take up the case to resolve the constitutional debate.
Supporters of HISA argue that the organization has been essential to improving the safety and integrity of horse racing. They point to a 38 percent decline in equine fatalities during the first quarter of 2024, a statistic they directly attribute to HISA’s consistent enforcement of safety standards.
Proponents also draw comparisons to other private regulatory bodies like the Financial Industry Regulatory Authority (FINRA), which courts have upheld as constitutional due to adequate governmental oversight.
Critics, like the HBPA, argue that HISA grants too much regulatory power to a private entity without sufficient government checks. They assert that the law as structured continues to breach the non-delegation principle, despite the congressional amendments made to shore up FTC oversight. The ongoing legal battle reflects the broader constitutional tension over how much regulatory power Congress can vest in private organizations.
