Santa Anita’s ‘Racing On Demand’ Experiment Lasts Just Two Days Before State Seizure
California track stands by legality of machines, though tribal side says removal was inevitable
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For a New York minute, California had what amounted to maybe might-be slot machines.
Santa Anita racetrack in Arcadia introduced two dozen “Racing on Demand” machines last Thursday, Jan. 15, according to an Orange Country Register report.
They were basically a version, more or less, of historical horse racing. Bettors could wager $1 on a “3×3” bet and offered players a shot at a jackpot by correctly picking three trifectas. Smaller payouts were available for hitting fewer combinations. The races came from non-California tracks and were run in previous years, though the horse information displayed didn’t reveal which specific races they were. Players could watch video of each race as their results came in.
“California racing is struggling. I don’t think that’s a secret,” Scott Daruty, senior vice president of the Stronach Group, which owns the track, told the paper. “We’ve got to come up with some additional ideas and additional revenue streams. This is a product we’ve spent a lot of time designing to be compliant with California law.”
About that last part …
The state and tribes don’t agree
Two days after Racing on Demand debuted, the state’s Department of Justice sauntered into Santa Anita grandstand and confiscated the two dozen machines, along with the cash that was in them, according to a Los Angeles Times report.
The article noted it was unclear what precipitated the removal of the terminals, but it seems they were potentially tipped off by the state’s tribal gaming interests.
“There was always only one outcome out of this,” Victor Rocha, conference chair of the Indian Gaming Association, told the paper. “They know it. I know it. Especially after what happened with sweepstakes and what’s currently happening with prediction markets.”
Santa Anita officials stand by the legality of the machines, saying they are not slot machines and aren’t violating any of the rules concerning pari-mutuel wagering, and that Racing on Demand is a game of skill.
“We stand firmly behind our legal analysis,” Daruty said in a statement, according to the Los Angeles Times. “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.”
It would appear that this situation has posted odds of 1:9 to head to court.
