The Horseracing Integrity and Safety Authority (HISA) has made progress in its financial situation, cutting down a large portion of its deficit from last year. After facing a $3.3 million loss in 2022, HISA reported this week that it has erased $1.3 million of that red ink in the following year. These updates were shared in their annual tax documents, which provide a detailed look at the organization’s costs, revenues, and employee salaries.
HISA’s Financial Performance
In 2023, HISA brought in a total of $43.7 million in revenue and spent $39.1 million, leaving a much smaller deficit than the previous year. The organization’s main source of income, about $40.3 million, came from fees it charges state authorities and racetracks. However, some of these fees are now part of a legal dispute. Churchill Downs Inc. and the New York Racing Association have filed a lawsuit against HISA, claiming that the fees were unfairly calculated using race purses, rather than focusing on the number of annual races.
Spending Breakdown
A significant portion of HISA’s expenses, about $21.6 million, went towards medication enforcement. This included $12.9 million paid to Drug Free Sport, the company managing the Horseracing Integrity & Welfare Unit. Additionally, the organization reported $619,906 in fines collected and $204,950 in revenue from lab tests that were passed on to racetracks. Legal expenses for the year totaled $3.8 million.
Employee Salaries and Compensation
Salaries for HISA’s top officials were also disclosed in the tax forms. The organization spent over $2.3 million on salaries and compensation for eight people. Lisa Lazarus, the CEO, received $586,547 in base pay for 2023, along with $13,200 in added benefits. This was a 17% raise from the previous year, when she made $500,000 for about 10 and a half months of work. Other key staff members, such as Chief Financial Officer Jim Gates and Equine Safety and Welfare Director Jennifer Durenberger, had significant pay increases, reflecting their ongoing roles within the organization.
Legal and Operational Challenges
HISA has faced legal challenges, with the lawsuit filed by major racetracks challenging its fee structure. The organization, which operates under the Federal Trade Commission, is required to file these tax documents annually. Despite the legal hurdles, HISA has shown that it is taking steps to improve its financial standing and address the issues it faced in its early years of operation.
Conclusion
HISA has made strides in improving its finances after a rough start. By reducing its deficit and continuing its work on medication enforcement, the organization is working towards a stronger financial future. However, legal disputes over its fee structure may still present challenges. With top executives seeing salary increases, it seems the organization is focused on building a strong team for future success.
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