Barr: Congress Will Utilize Oversight Authority of FTC Regarding Horse Racing's HISA Concerns
RICHMOND, Ky. – One of the principal lawmakers behind the federal legislation to nationalize horse racing regulations tells Odds On News that he is monitoring the situation regarding the Horseracing Integrity and Safety Authority and the concerns raised by horsemen and Churchill Downs.
U.S. Rep. Andy Barr (R-Ky.) answered questions about HISA after an event two weeks ago at Eastern Kentucky University. He and U.S. Rep. Paul Tonko (D-N.Y.) led a bipartisan effort for years to take a sport whose regulations varied by state and create a single set of rules administered by a private authority monitored by the U.S. Federal Trade Commission.
However, HISA has faced criticism from some stakeholders since it became law nearly six years ago. Federal courts have issued split rulings on whether the authority is constitutional, and critics have raised questions about transparency within the organization, especially after noted handicapper and owner Marshall Gramm was able to access data on horses he did not own.
Gramm accepted a provisional suspension last month on charges he accessed files during six weeks in the spring.
“HISA’s legitimacy depends on confidence that it is transparent, accountable, technologically competent and subject to meaningful oversight,” Churchill Downs Inc. CEO Bill Carstanjen wrote to the FTC in a letter last month.
Carstanjen, whose letter also raised concerns about the “Fair Hill Five” racing controversy, noted that tracks have paid more than $250 million in fees to establish the authority, with about an eighth of that spent on technology.
‘We Will Be Monitoring’
When asked if he had any concerns about HISA or changes he’d like to see made to the law, Barr noted that he and Tonko have talked about the recent events.
“The way we structured the law, we gave the Federal Trade Commission immediate jurisdiction over that, and we will be monitoring the Federal Trade Commission’s response to that.”
Barr, who has served in the U.S. House since January 2013, is running as the Republican nominee to replace U.S. Sen. Mitch McConnell (R-Ky.). He’s heavily favored to win the race against Democratic candidate Charles Booker. Traders on Kalshi give the congressman a 95% chance of winning when voters go to the polls in less than five weeks.
As a House member, Tonko, too, is up for re-election in his upstate New York district. He also is heavily favored to win on Nov. 3, as traders on Kalshi give him a 97.3% chance of winning against Republican challenger Ralph Ambrosio.
Horsemen Welcome Congressional Review
The CEO of the National Horsemen’s Benevolent and Protective Association, an organization that represents about 30,000 owners and trainers in the sport, told Odds On News they appreciate that Rep. Barr’s comments regarding congressional oversight of the FTC and its handling of HISA.
“Quite frankly, horsemen have been frustrated with the FTC’s response to many issues,” Eric Hamelback said in an email. “Congress created the FTC’s oversight role for a reason, but who is actually providing oversight. We believe that oversight needs to be meaningful, independent, and responsive to all stakeholders affected by HISA. We also believe Congress has a responsibility to make sure the FTC is doing its job and is listening to all sides and not just HISA.”
Hamelbeck added that the National HBPA sees the issue as not just a “disagreement” between its members and HISA. Rather, there are “legitimate questions” that need to be addressed.
“At the end of the day, we all want the same thing in racing, a regulatory system that protects the integrity and safety of racing while also treating the people who participate in and support this industry fairly,” he added.
Odds On Analysis
Don’t expect this Congress to look into HISA. Its session ends on Jan. 3, and between now and then, Congress will need to pass a reconciliation bill. It also may look to pass legislation to restore the 100% deduction cap on gambling losses, but even that’s not a certainty.
When the next Congress gathers starting next year, lawmakers will be in a better position to review HISA and the FTC’s oversight of the agency.
Assuming the Democrats win the House, and Kalshi traders give the party a 91.5% chance to do so, Tonko stands to be one of the more senior members of the majority caucus, and he’s currently a member of the House Energy and Commerce Committee that oversees the FTC.
Tonko might not become committee chair since U.S. Rep. Dave Pallone (D-N.J.) serves as the ranking member. Still, Tonko has been a part of the committee for nearly 14 years. He’ll be one of its more senior members and help drive the committee’s agenda for the 2027-28 term.
While Barr would be a first-term senator, his House experience will carry weight in that chamber. The bigger question there is which party wins control of the Senate. Kalshi traders currently give Democrats a 63% chance to wrest it away from Republicans. However, that still gives the G.O.P. a realistic shot at maintaining power in the chamber, either through a slight majority or a 50-50 split. If it's the latter, Republicans would retain control because Vice President J.D. Vance would cast the tie-breaking vote.
It remains to be seen what committees Barr would sit on in the Senate, but again, given his Capitol Hill experience, he should be able to get the Senate to review the authority. And even if the Democrats take control of the chamber, U.S. Sen. Kirsten Gillibrand (D-N.Y.) was also a sponsor of the legislation. Barr could work with her to see that the stakeholders’ concerns are being addressed.
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