Published: 2026/01/21 02:31:30
California Horse Racing Tracks Face Legal Showdown Over Slot-Machine-Like Terminals
The contentious debate surrounding the legality of slot-machine-like terminals at california horse racing tracks reached a critical point on Thursday when Santa Anita Park installed 26 “Racing on Demand” machines. These terminals, allowing betting on past races, are set to operate during live racing days, igniting a potential conflict with Native American tribes who hold exclusive rights to most non-pari-mutuel gambling in the state. The Los Angeles Times first reported on the installation, highlighting the escalating tensions.
The Core of the Dispute: Skill vs. Chance
At the heart of the issue lies a basic question: are these terminals considered pari-mutuel wagering – a game of skill where payouts depend on the total amount bet – or are they simply games of chance akin to traditional slot machines? The distinction is crucial. If classified as a game of skill, regulation falls under the California Horse Racing Board (CHRB). Though, if deemed a game of chance, the authority rests with the state’s Native American tribes, who have fiercely protected their gambling exclusivity.
Victor Rocha, conference chair of the Indian Gaming Assn., expressed strong opposition, stating, “This puts it on a collision course with the tribes… They clearly know what they are doing, they are smart guys, but it is clearly gambling. They will get the appropriate response, politically speaking.” Rocha drew a parallel to illegal gambling operations, asserting that Santa Anita could face closure if the machines are deemed unlawful.
Historical Horse Racing: A Gray Area
The machines in question fall under the umbrella of Historical Horse Racing (HHR), a relatively new form of wagering gaining traction across the country. HHR terminals resemble slot machines, rapidly cycling through bets on previously run races. Critically, players are often presented with limited information about the horses and jockeys, typically only seeing the final seconds of the race. Tracks argue that this lack of detailed handicapping information, coupled with the fact that players bet against each other rather than the house, qualifies HHR as a game of skill. However, this argument is fiercely contested.
The three-by-Three Bet and Attempts to Circumvent Regulations
California tracks are attempting to leverage a recently passed betting mechanism – the “three-by-three” bet,approved in April 2024 – to support their claim. This bet requires players to select the first, second, and third-place finishers in three pre-chosen races, with all wagers pooled into a pari-mutuel system. While the track takes a percentage of the pool, the exact amount remains undisclosed. Typically, HHR operations elsewhere utilize an 8% takeout, while live horse racing averages 20%, though this varies. This is the first instance of the three-by-three bet being applied to past races.
Rocha views this as another attempt to exploit loopholes, stating, “I think like sweepstakes and prediction markets, everyone has lost their mind when it comes to gambling… Everyone is looking for a loophole. [Santa Anita] has been champing to get into digital gaming. This is clearly a violation of state compacts.”
Lack of Transparency and Regulatory Concerns
The installation of the machines at Santa Anita was met with surprise by the CHRB,who were not informed in advance. A CHRB spokesperson stated, “Like everyone else, we had heard rumors, but the CHRB was unaware of this actual move.” This lack of communication has further fueled the controversy and raised questions about the track’s intentions.
Adding to the opacity, Santa Anita’s owner, The Stronach Group, has remained silent, declining multiple requests for comment. The track also failed to announce the new betting option in its regular newsletter, “Stable Notes,” which typically highlights fan-amiable promotions.
The TOC’s Foresight and Potential Expansion
Interestingly, the Thoroughbred Owners of California (TOC) had seemingly anticipated this move, including a provision in its 2024 Race Meet Agreement with Santa Anita allowing for up to forty self-service totalizator terminals for wagering on concluded races, contingent on the TOC and CHRB’s consent. If Santa Anita’s move is upheld, it is anticipated that Del Mar and Los Alamitos will soon follow suit.
What’s Next: A Looming Legal Battle
The stage is now set for a protracted legal and political battle. The tribes, with their meaningful political influence and history of successfully defending their gambling rights, are expected to mount a strong challenge. California Assembly Bill 831, passed in 2023, demonstrates the legislature’s willingness to protect tribal gaming interests, prohibiting certain types of online sweepstakes deemed threatening to their exclusivity.
Santa Anita’s strategy of proceeding without prior notification to the CHRB has already put them at a disadvantage. The coming weeks and months will determine whether these “racing on Demand” machines will become a permanent fixture at California racetracks or if they will be shut down, marking a significant victory for the state’s Native American tribes.
Key Takeaways
- The installation of slot-machine-like terminals at Santa Anita Park has ignited a dispute over the legality of Historical Horse Racing in California.
- The central question is whether these machines constitute a game of skill (regulated by the CHRB) or a game of chance (regulated by Native American tribes).
- Native American tribes are strongly opposed to the machines, viewing them as a violation of their exclusive gambling rights.
- Santa Anita’s lack of transparency and failure to notify the CHRB have exacerbated the situation.
- A legal battle is anticipated, with the tribes likely to vigorously defend their interests.
