U.S. Supreme Court Backs Horseracing Integrity Amid Legal Battle

The U.S. Supreme Court has allowed the Horseracing Integrity and Safety Authority to continue regulating horse tracks despite ongoing litigation. The justices suspended a lower court ruling challenging the Authority's enforcement powers, which were granted under 2020 legislation. This case may impact similar regulatory entities.

The U.S. Supreme Court on Monday upheld the regulatory authority of the Horseracing Integrity and Safety Authority, allowing it to oversee horse tracks across the United States. This decision comes amidst a legal dispute initiated by Texas and other plaintiffs contesting the Authority's power to enforce its rules.

This order effectively suspends a previous ruling by a lower court that deemed the Authority's enforcement powers to infringe upon a legal principle against Congress delegating governmental power to a private entity. The Authority, based in Lexington, Kentucky, was granted its powers through legislation passed by Congress in 2020.

The case is being closely watched as it could set a precedent affecting other self-regulatory organizations responsible for monitoring industries such as brokers-dealers and auditors of publicly traded companies.

(With inputs from agencies.)