Santa Anita Race Track Introduces New Slot-Machine-Style Terminals, Setting the Stage for Exciting Discussions

Controversy Erupts Over Slot-Machine-Like Terminals at Santa Anita

The ongoing debate surrounding the legality of slot-machine-like terminals at horse racing tracks escalated dramatically on Thursday when Santa Anita Park installed 26 Racing on Demand machines. The terminals, located on the grandstand’s ground floor, are set to operate after 11 a.m. on live racing days.

Central to this conflict is the classification of these machines. Are they part of pari-mutuel wagering, where payouts are determined by the total amount bet and regarded as a game of skill? Or do they represent a game of chance, similar to traditional slot machines, which fall under tribal regulations? If categorized as pari-mutuel, the California Horse Racing Board would oversee them; if defined as games of chance, tribal authorities would maintain control.

“This puts it on a collision course with the tribes,” remarked Victor Rocha, chair of the Indian Gaming Association, emphasizing the potential political repercussions. “They clearly know what they are doing…but it is clearly gambling. They will get the appropriate response, politically speaking.”

Rocha further noted the gravity of the situation, stating, “When you put illegal gambling machines in a liquor store, it gets shut down. If Santa Anita has illegal machines, they should be out of business. California didn’t sign up for racinos.”

The issue is complicated by differing interpretations of whether the machines involve skill or chance. Each side argues the perspective that best supports its position. Despite resembling slot machines, the terminals feature a rapid turnover style of betting with minimal information regarding the horses or jockeys involved. According to tracks, the lack of detailed handicapping data suggests that it remains a game of skill, as players do not bet against the house but against one another.

In an attempt to reinforce their case, the tracks refer to a three-by-three betting format introduced in April 2024. In this model, bettors select the first three finishers from three pre-determined races, with all bets pooled together in a pari-mutuel fashion. The tracks retain a percentage from these wagers, though the specific details of distribution are unclear. Typically, Historical Horse Racing utilizes an 8% takeout, while live horse racing averages around 20%.

“I think like sweepstakes and prediction markets, everyone has lost their mind when it comes to gambling,” Rocha said. “Everyone is looking for a loophole. [Santa Anita] has been champing to get into digital gaming. This is clearly a violation of state compacts. You can expect a very full-throated reply.”

The Thoroughbred Owners of California (TOC) anticipated moves like these, noting in its race meet agreement with Santa Anita that, “Track shall not import and conduct wagering on concluded races…without first obtaining the consent of the TOC and the CHRB.” At the time, little attention was paid to this provision, as developments regarding Historical Horse Racing seemed stagnant. If these machines are permitted to remain at Santa Anita, they might soon appear at Del Mar and Los Alamitos.

As the situation unfolds, the primary contention will be whether the machines can remain operational. Lack of communication from Santa Anita regarding the installation has raised concerns, particularly among regulatory bodies. “Like everyone else, we had heard rumors, but the CHRB was unaware of this actual move,” a CHRB spokesperson stated.

The California Horse Racing Board had been preparing for a potential request to amend the track’s license to allow such machines. Internal assessments were underway to evaluate the legality of their installation, but neither Santa Anita nor the TOC submitted an agenda item before the 12-day cutoff.

Requests for comment from the Stronach Group, which owns Santa Anita, went unanswered, and no official announcement was made regarding the new betting options. The track did not even mention the terminals in its racing day newsletter, suggesting an effort to downplay the situation.

As legal and regulatory battles loom, the implications of this installation extend beyond Santa Anita, potentially affecting the broader landscape of horse racing and tribal gaming in California.