Santa Anita Park’s newly introduced Racing on Demand entertainment machines did not sit well with tribal entities, prompting authorities to intervene. The machines were promptly seized, although Santa Anita representatives vowed to fight back, claiming that the offering did not violate any state laws.
Santa Anita Park Added New Machines to Its Product Roster
On January 15, thoroughbred horseracing track Santa Anita Park added experimental Racing on Demand terminals, offering a new entertainment option to visitors. The concept behind the machines was similar to HRT machines and was powered by historical horse races rather than random numbers. Players could wager $1 on past events, selecting the top three finishers in three separate races in a 3×3 format.
According to track officials, these machines were a pari-mutuel wagering product where players played against each other rather than against the house. They argued that this set them apart from traditional gambling and places them under the pari-mutuel framework of the California Horse Racing Board.
California officials and tribal representatives, however, begged to differ.
The Machines Were Seized, Tribes Praised the Intervention
California’s tribes, which are the only entities allowed to offer most types of casino gaming, are known for their fervent protection of their exclusivity. Tribes were quick to slam the machines as illegal due to their similarity to slots. This prompted a quick reaction from state authorities.
On January 17, just two days after the new offering was introduced, officials seized the 26 machines along with the cash that was inside them.
The crackdown was welcomed by tribe officials who said that this was the logical outcome.
Santa Anita’s parent company, The Stronach Group, was unamused. Representatives reiterated their claims that the machines did not violate the current gaming rules and vowed to challenge the decision to seize them. The group emphasized that it is confident “the law is clear” and added that it is prepared to defend itself in court.
California’s tribes have become notorious throughout the gaming industry due to their staunch defense of their gaming exclusivity. The tribes previously struck against the sweepstakes format and are currently opposing the emerging prediction markets vertical. Experts are carefully monitoring the situation to see whether The Stronach Group’s decision will result in another lengthy legal battle against the state tribes.