Santa Anita HHR-like machines removed by state Department of Justice
Santa Anita’s experiment in placing a similar version of historic horse racing at the racetrack on Thursday came to an abrupt end Saturday afternoon when law enforcement physically removed the machines after the race ended.
Two Santa Anita officials confirmed that state Department of Justice officials removed the betting machines installed Wednesday and were confiscated and removed from the track.
According to eyewitnesses, a representative from the Arcadia Police Department, along with several law enforcement officers wearing patches reading “California Department of Justice Attorney General,” entered the grandstand area where the Racing on Demand machines were located and unplugged them, placed them on handcarts, and removed them from the building.
Employees working in the area were ordered to leave while around 15 police officers confiscated the machines, including all the cash they contained.
The machines, which allow people to bet on past horse races in a slot machine-style format, were installed in the Santa Anita grandstand area Thursday without notice. Santa Anita did not advertise the machines or mention them in their fan newsletter. This was what we called a soft opening. The decision to install the machines was made without notice to the California Horse Racing Board.
It’s not clear who or what precipitated the removal, but the tribes, which control most non-pari-mutuel betting in the state, told the Times they would respond “all-out” to the installation of the machines, which they say violates the tribal compact on gaming. Tribes are a very powerful force in state politics and contribute millions of dollars to political candidates.
A tribal leader specializing in gambling did not respond to a message.
Santa Anita believes the machines, which offer first, second and third bets on three past races, do not violate pari-mutuel betting rules. The tribes argue that slot machines are a game of chance and fall under its jurisdiction. Santa Anita claims that because mutual pool does not take place internally but between punters, it is a game of skill and permitted.
There’s no doubt this is going to result in litigation, and the fact that the machines were removed so quickly by the state attorney general’s office could tip the scales in favor of the first side. The consortium that was trying to introduce this type of betting in California said it sent a copy of its legal opinion to the attorney general before the installation.
The CHRB also requested a legal opinion on the matter, although its contents have not been made public.
“We strongly stand by our legal analysis,” Scott Daruty, senior vice president of the Stronach Group, said in a statement. “Racing On Demand operates within California’s longstanding pari-mutuel betting laws, using a bet that regulators have already approved. Attorney General [Rob] Bonta received our full legal analysis almost a year ago.
“His office had plenty of time to raise concerns. They did not. We proceeded on a sound legal basis, and since the state chooses to challenge this now, we are fully prepared to defend ourselves. We are confident that the law is clear.”
The future of California racing hangs in the balance. The state is one of the few that receives no additional revenue from casino-style gaming. Historic horse racing, which allows people to bet on past races with little handicap information, has greatly increased purses in Kentucky and other states, where it is legal.
California is at a significant disadvantage in terms of scholarships because it does not have additional revenue. Santa Anita did not reveal how much of those types of bets would go to handbags.
