Santa Anita betting machines removed by state Department of Justice
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Santa Anita’s experiment of placing betting machines similar to Historical Horse Racing at the racetrack last week came to an abrupt halt Saturday when law enforcement officials removed the machines after racing ended.
Two officials at Santa Anita confirmed that representatives of the state Department of Justice removed the Racing on Demand machines, which were confiscated.
According to eyewitnesses, a representative of the Arcadia Police Department, along with law enforcement officers with patches that read “California Department of Justice Attorney General,” came into the grandstand area where the machines were located and unplugged them, placed them on handcarts and removed them from the building.
Santa Anita gave no notice before installing slot-machine-like terminals loosely connected to horse racing. Tribes are expected to fight the move.
Employees in the area were told to leave as about 15 officers confiscated the machines, including all the cash in them.
The machines, which allow people to bet on past horse races in a slot-machine-type format, were installed in the grandstand area of Santa Anita on Thursday with no notice, in what was called a soft opening.
Santa Anita did not advertise the machines or announce them in its fan newsletter. The move to install the machines also came without advance notice to the California Horse Racing Board.
It’s unclear who or what precipitated the removal, but a representative for the tribes of California, which control most non-pari-mutuel wagering in the state, told The Times that they would have a “full-throated” response to the installation of the machines, which they say violates the tribal compact with the state on gambling.
The tribes are a powerful force in state politics and contribute millions of dollars to candidates.
“There was always only one outcome out of this,” said Victor Rocha, conference chair of the Indian Gaming Assn. “They know it. I know it. Especially after what happened with sweepstakes and what’s currently happening with prediction markets.”
A recent state attorney general ruling and objections by tribal leaders suggest difficulty adding Historical Horse Racing machines in California.
The tribes historically have prevailed in placing restrictions on both types of gambling.
Rocha, who is in Barcelona, Spain, at a world gaming conference, said he was not told in advance that the state would seize the machines.
Santa Anita says the machines, which offer first, second and third betting on three past races, do not violate the rules for pari-mutuel gambling. The tribes contend the slot-like machines are a game of chance and under its purview. Santa Anita says because the mutuel pool is not held in-house but between bettors that it is a game of skill and allowed.
This probably is headed for litigation, and the fact that the machines were removed so quickly by the state attorney general’s office might tip which side has the early edge. The consortium trying to bring this type of wagering to California said it sent a copy of its legal opinion to the attorney general in advance of the installation.
The CHRB also called for a legal opinion on the issue, although one has not been made public.
“We stand firmly behind our legal analysis,” Scott Daruty, senior vice president of the Stronach Group, which owns the track, said in a statement. “Racing On Demand operates under California’s long-standing pari-mutuel wagering laws using a wager that regulators already approved. Attorney General [Rob] Bonta received our comprehensive legal analysis nearly a year ago.
California’s racing future likely hinges on adding Historical Horse Racing machines, but they are similar to slot machines and face many hurdles.
“His office had ample time to raise concerns. They did not. We proceeded on solid legal ground, and since the state is choosing to challenge that now, we’re fully prepared to defend ourselves. We’re confident the law is clear.”
At stake is the future of California racing. The state is one of the few that receive no supplemental income from casino-type gambling. Historical Horse Racing, allowing people to bet on past races with little handicapping information, has greatly increased purses in Kentucky and other states, where it is legal.
California is at a big disadvantage in purses because it does not have the supplemental income.
Business on the machines was light with no promotion or advertising. On the first day, the 26 machines handled $11,281 in dollar bets. On Friday, it was $11,465 and Saturday it was $3,854. The total was $26,600.
Santa Anita has not announced what percentage of the mutuel handle would go to purses. But if applying the formula that Kentucky uses for its machines, then the three-day haul produced about $532 for purses.
