Seeking to ease its financial burden on the Thoroughbred industry, the Horseracing Integrity and Safety Authority aims to shift half of its income collection away from assessments and toward outside revenue streams by 2030. HISA plans to be budget-neutral by 2035.
These targets, outlined by HISA CEO Lisa Lazarus Dec. 10 before attendees at the Global Symposium on Racing in Tucson, Ariz., are part of HISA's long-term financial strategy. The Authority, she said, cannot continue to fully rely on tracks and participants to pay for its regulatory oversight.
HISA, a private, self-regulatory, non-profit corporation overseen by the Federal Trade Commission, was established by federal law in 2020 to develop and enforce uniform safety and integrity rules across Thoroughbred racing in the United States. The Horseracing Integrity & Welfare Unit enforces HISA's Anti-Doping and Medication Control Program.
In a follow-up interview with BloodHorse, after her statements before the Symposium audience, she said one promising revenue mechanism could come from federal action expanding P visas to a range of equine workers. This idea is credited to Rep. Andy Barr of Kentucky, according to Tom Rooney, president and CEO of the National Thoroughbred Racing Association, who spoke before Lazarus at the Symposium.
Such a program of P visas, structured as an alternative to the traditional H-2B visa pipeline for workers, could deliver tens of millions of dollars annually to HISA if it comes to pass. Lazarus characterized that potential revenue as transformative.
P visas are customarily issued to foreign athletes, artists, and entertainers, while H-2B visas are currently used as temporary worker visas for track workers, grooms, and stable hands.
Lazarus also pointed to HISA's veterinary record database—now exceeding seven million entries—as another avenue for generating revenue. She said the anonymized, aggregated data could support models for equine insurers and benefit emerging equine-technology companies. HISA would then receive fees or a share of the revenue.
"So, for example, we're working with an insurance broker to build a model for equine insurers that will allow them to much more efficiently and newly assess risk," she said, noting the current insurance structure bases mortality risks on only three basic considerations.
HISA's annual budget is around $80 million, but it is closing the year with roughly $56 million in actual spending, Lazarus said, a lower figure in part due to operational credits to certain jurisdictions for providing services.
Despite these reductions, assessments continue to strain some cash-strapped racing operations, including Emerald Downs in Washington, where management has cited economic pressure tied to HISA's revised fee formula. HISA's shift to a starts-only assessment model—championed by major track operators—has effectively increased costs for tracks with high volumes of lower-level races, such as Emerald Downs.
Emerald Downs has been offered the opportunity to earn additional credits while acting as a pilot track, Lazarus said, while she acknowledged those credits would not bridge the fee gap "on the whole thing."
Ultimately, court rulings on HISA's constitutionality will impact HISA's future.
"So hopefully the next year, the court is going to decide if it's going to either be that we're all in or all out," she said.
If HISA is unconstitutional and needs to disband, "It doesn't matter anymore," she added. But if HISA is ruled constitutional, states that currently are not contributing to HISA, such as Louisiana and West Virginia, will then pay assessments, thereby lessening the financial burden on other states.
"It's a massive impact on all the other racetracks," she said.
Repole Encourages Industry Action
Later, during a video-conference interview that drew one of the Symposium's largest audiences, horse owner and billionaire businessman Mike Repole urged a call to action for the Thoroughbred racing industry.
Speaking remotely with on-site FanDuel Racing broadcaster Christina Blacker during a session called "Repole: An Unfiltered Look at Racing's Future," he said industry leaders must operate with urgency until they produce a strategy to reverse trends of declining foal crops and inflation-adjusted handle.
Repole took aim at most of the major power players in the sport, saying Thoroughbred racing and breeding must address its challenges and elevate the racetrack experience beyond its signature venues. Among the items proposed by Repole were the establishment of lifetime traceability for horses, expanded aftercare funding, and transparency from influential stakeholders.
Repole made no apologies for being brash and wanting action.
"I might strike out, but I'll never strike out looking. This industry is going to strike out looking," he said.
