California Officials Confiscate Betting Kiosks at Santa Anita Racetrack
A legal brouhaha has broken out after state officials confiscated betting kiosks resembling historic horse racing slot-style machines at Santa Anita, one of California’s oldest horse tracks, just two days after they were installed.
No Slots for You
Historical horse racing (HHR) machines are similar to slots, but they can allow the user to select a precise outcome, which often blurs the legal line between them and the randomness of traditional slot machines.
According to officials at Santa Anita, the owners of Santa Anita, the Stronach Group, made the gaming authorities aware of their plans almost a year ago without any objections.
Not So Fast
The machines were installed on Thursday of last week and were dubbed “Racing on Demand” and allowed customers to wager $1 “three-by-three” bets, in which they could choose the top three finishers in three separate historical horse races.
However, shortly before Saturday’s afternoon nine-race card had ended, officials from the California Department of Justice Attorney General’s office and a representative of the local Arcadia Police Department carted all 26 machines away, only two days after installation.
Stronach’s senior vice president of the Los Angeles Turf Club, Scott Daruty, issued a written response, stating, “Attorney General Bonta received our comprehensive legal analysis nearly a year ago. 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.”
Tribal Influence
It is no secret that the nation’s gaming tribes jealously guard their territory and are vigilant about extinguishing any breach of their agreements with the states in which they operate.
California tribes are among the most powerful and have garnered tremendous political influence in the Golden State. Therefore, many suspect that the tribal leaders made their objections known to the Attorney General’s office, which precipitated the confiscation of the HHR machines.
“There was always only one outcome out of this,” Victor Rocha, conference chair of the Indian Gaming Association, told the Los Angeles Times. “They know it. I know it. Especially after what happened with sweepstakes and what’s currently happening with prediction markets.”
Big Money Met Bigger Opposition
California tribes pitched a heated battle over third-party platforms lobbying to get mobile sports betting approved at the ballot boxes in November 2022. Industry powerhouses like DraftKings and FanDuel, as well as their trade mouthpieces, spent an estimated $400 million to convince voters to approve mobile sports betting.
However, the tribes reportedly spent just as much to oppose the measures, and they were ultimately successful when both Proposition 26 (in-person betting at tribal casinos/racetracks) and Proposition 27 (online betting) were soundly defeated.
The tribal nations also opposed online sweepstakes, which essentially mirror online casino gambling. Those arguments were also heard loud and clear by the legislature, with California Governor Gavin Newsom signing AB 831 in October, making sweepstakes using social casinos and tokens to facilitate cash payouts illegal in the state.
The Stronach Group is preparing a legal response but if no court intervenes, the machines will be destroyed after 30 days of the seizure and any money collected within them will go to the state.
