Court Declares FTC-Approved Horse Racing Fee Framework Unlawful

Companies that operate the Kentucky Derby and the Belmont Stakes convinced a federal court that a fee methodology under the Federal Trade Commission to fund regulatory activities violates the law.

The Horseracing Integrity and Safety Authority’s calculation of annual fees based each state’s total prize money is arbitrary and capricious under the Administrative Procedure Act, the US District Court for the Western District of Kentucky said in a Wednesday declaratory judgment.