Bill H. Walmsley, et al. v. Federal Trade Commission, et al.

The Horseracing Integrity and Safety Act, 15 U.S.C. §§ 3051-3060, delegates broad enforcement powers over regulated parties in the horseracing industry to a private corporation, the Horseracing Integrity and Safety Authority. Among other things, the statute empowers the Authority to conduct investigations, impose sanctions, and sue in federal court. §§ 3054, 3057. In addition, the Act grants the Authority broad rulemaking power. The Act requires the Federal Trade Commission to approve rules proposed by the Authority even if it disagrees with those rules as a policy matter, so long as they are “consistent” with the Act and the FTC’s own regulations, § 3053(c)(2), though the Act also grants the FTC the after-the-fact power to “abrogate, add to, and modify” Authority rules, § 3053(e). The questions presented are:

1. Whether the Act unlawfully delegates enforcement power to the Authority.

2. Whether the Act unlawfully delegates rulemaking power to the Authority.1 1 Two other cases currently pending before the Court present substantially similar questions. See Horseracing Integrity and Safety Auth., Inc. v. Nat’l Horsemen’s Benevolent and Protective Ass’n, No. 24A287 (stay app. filed Sept. 19, 2024); Oklahoma v. United States, No. 23-402 (pet. filed Oct. 13, 2023).