The Horseracing Integrity and Safety Act (HISA), passed in 2020, represents the most significant regulatory reform of U.S. horse racing since 1978. It established HISA Authority Inc., a private nonprofit delegated by the Federal Trade Commission (FTC) to create and enforce rules, primarily through its subsidiaries HIWU and USADA. However, the act only applies to states that voluntarily register or allow interstate off-track wagering, leaving states like Nebraska, Texas, Louisiana, and West Virginia outside its scope, which limits their wagering capabilities and threatens their racetracks’ financial viability. Legal challenges have arisen over the constitutionality of the FTC’s delegation of rule-making and enforcement powers to HISA and its subsidiaries, resulting in a circuit court split now before the U.S. Supreme Court.

While courts have upheld the FTC’s delegation of rule-making authority after Congress enhanced FTC’s oversight powers, disagreement persists over the enforcement authority delegated to HISA’s subsidiaries. The 5th Circuit ruled this delegation unconstitutional due to insufficient FTC control, whereas the 8th Circuit upheld it, creating a legal impasse. Meanwhile, legislative efforts like the proposed Racehorse Health and Safety Act of 2025 seek to repeal HISA and replace it with industry-appointed committees. Until these legal and legislative issues are resolved, the U.S. horse-racing industry remains divided between states subject to HISA and those exempt, awaiting clarity on the act’s future.