Santa Anita is adding slot machine-like terminals that are sure to stir up a fight

The battle over the right of horse racing tracks to legally install slot-like terminals in their facilities to allow betting on past races came to a head Thursday when Santa Anita installed 26 Racing on Demand machines at the track on the ground floor of the grandstand. They will operate after 11am on live racing days.

At the core of the issue is the legality of slot machine type terminals. Is pari-mutuel wagering, where the payout is determined by the amount of money wagered, also considered a game of skill? Or is it a game of chance, like slot machines and many table games? If it is a pari-mutuel skill sport, then it is regulated by the state’s governing body, the California Horse Racing Board. If it’s a game of chance, it’s controlled by the tribes, which have a special role in most of the non-pari-mutuel betting in the state.

“This puts you in a state of conflict with nations,” said Victor Rocha, chairman of the conference of the Indian Gaming Assn., who said he was not informed in advance of this. “They know what they are doing, they are smart people, but it is clear that they are gambling, they will get the right answer, politically.

“If you put illegal gambling machines in a liquor store, it gets shut down. If Santa Anita has illegal machines, it should be out of business. California didn’t register racinos [the term for race tracks that have casinos].”

The equipment addition was first reported by the Paulick Report.

Determining whether these machines are a skill or an opportunity remains an unresolved issue, with each side looking for a vision that best suits their interests. The machines, which fall into the category of Historical Horse Racing, have the look and feel of a slot machine with a fast churn of money. You get little information about the horses or jockeys you are currently betting on. The default in these machines is that you only see the last two to three seconds of the race. Tracks resist that because they give you little handicap information, and that you’re not betting against the house but other players, it’s a game of skill.

One loophole that the tracks tried to use this time was the passing of the three-for-three betting in April 2024. In it, you have to choose the first, second and third of the three pre-selected races. All wagers go into the same pari-mutuel pool, where you compete against other bettors. The track gives a percentage at the top, although in this case, the percentage and distribution are unknown. In most places, Historical Horse Racing uses about 8% emissions. Live horse racing has a payout ratio of 20% but varies by type of bet. This is the first time that these three-by-three races have been used in previous races.

“I think like sweepstakes and prediction markets, everyone has lost their minds when it comes to gambling,” said Rocha. “Everyone is looking for a hiding place. [Santa Anita] has been fighting to get into the digital game. This is clearly a violation of federal agreements. You can expect a very comprehensive answer. “

The Thoroughbred Owners of California (TOC) foreshadowed such a move on page 25, item 41, of its Race Meet Agreement with Santa Anita when it stated:

“Betting on Conducted Races. The Track shall not enter and conduct betting on completed races at Santa Anita Park or on the Internet without obtaining the approval of the TOC and the CHRB. The TOC hereby authorizes the Track to have up to forty (40) serial terminals at Santa Anita Park that facilitate wagering on completed races.”

No one thought much of it at the time as the consortium working on the HHR project seemed to be doing little. If the machines are allowed to stay at Santa Anita, they are expected to be installed soon at Del Mar and Los Alamitos.

What is expected to continue now is the dispute over whether the machines can stay there. If it’s a matter of winning friends and influencing people, the track is already lacking by not telling the governing body of the sport that it is coming.

“Like everyone else, we have heard rumors, but CHRB was not aware of this actual move,” a CHRB spokesperson said in a statement.

Historic horse racing betting sites sparked controversy when they were installed in Idaho. Similar equipment was installed at Santa Anita Park in Arcadia.

(Otto Kitsinger/AP)

The CHRB was awaiting an application to amend the track’s license to allow it to place what it considers to be Historical Horse Racing equipment at Santa Anita. It even asked its legal staff to come up with an opinion on whether it is legal to install these devices. A Times request for the document was denied citing attorney-client privilege.

But neither Santa Anita nor the Thoroughbred Owners of California requested the agenda item for the termination 12 days ago.

Santa Anita’s owner, the Stronach Group, did not respond to multiple requests for comment.

In fact, no one seems to want to talk about this. Santa Anita didn’t even issue a news release about this new betting opportunity at the track. And, it didn’t mention it in its race-day brochure “Strict Notes,” which mostly touched on fan stuff like $2 hot dogs and free parking.

However, in a one-page fact sheet about Racing on Demand, TSG goes to great lengths to explain why it “Doesn’t Infringe on National Gaming” and why it has “existing authority.”

In the section titled “What It Isn’t,” it makes these points about what it isn’t:

“- A slot machine.

“— Indoor gambling.

“- Historic Horse Racing (as conducted in Kentucky, Virginia or other states.)”

Tribes have significant political influence in California, in part, because of the millions of dollars they spend on political contributions. They are known to freely sue any challenger to their rule over the many non-pari-mutuel casinos in the state. And they almost always win.

Last year, the California Legislature passed Assembly Bill 831, which prohibits companies from offering the types of online sweepstakes that states see as a threat to their choice to exclusively gamble. The unanimous vote was 120-0.