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Commissioners warn rising HISA assessment could threaten smaller tracks; seek options
Summary
Commissioners and staff discussed a sizable increase in the federal HISA assessment allocation for 2026 — described in the meeting as roughly a 50% rise — and warned that the change, which shifts cost allocation toward starts rather than purse size, may make operations untenable for smaller tracks such as Canterbury Park without new funding mechanisms or legislative relief.
Commissioners spent an extended portion of the meeting addressing a growing industry worry: a substantial increase in the HISA assessment that staff and industry representatives said may fall heavily on smaller tracks.
A presenter argued the assessment "actually went up about 50%" from prior estimates and explained the formula change shifts cost allocation toward starts rather than purse size, which can raise smaller tracks’ share of the total. "It has become untenable in terms of the economics for everybody," the presenter said, warning the reassigned costs could threaten the viability of mid- and lower-tier tracks.
Commissioner-level speakers and staff traced the change to litigation and subsequent HISA rule amendments that altered the allocation formula; one commissioner explained the 2020 federal statute ties assessment allocation to starts and said earlier proposals had sought to balance starts and purse size. Commissioners raised possible responses including: work with the legislature on funding mechanisms, explore temporary offsets with ADW funds, encourage tracks to consider whether to export signals (which triggers interstate regulation and related costs), and continue industry negotiations with HISA on alternative funding approaches.
No formal commission action on opt-in/opt-out or litigation was recorded in the transcript; staff said they would continue discussions with Canterbury Park and industry partners and provide additional data in coming meetings. Commissioners also suggested forming a working group or assigning committee responsibility to study options and potential legal pathways.
