By Bill Finley
Patrons arriving for Thursday's races at Santa Anita were met by something new, gaming terminals called Racing On Demand. Racing On Demand terminals–like HHR machines–are a form of pari-mutuel wagering on previously run races.
The Paulick Report was first with the story.
Twenty-six machines were operating on Thursday, and they were on the ground floor of the grandstand in an area formerly known as the Horse Wizard Lounge. No decision has yet been reached regarding how many machines will ultimately be made available to Santa Anita patrons. That decision may take time, but the obvious goal will be to have enough machines available so that revenues from the Racing On Demand terminals will have a positive impact on purses.
“Santa Anita Park is now offering Californians the opportunity to place wagers on previously run horse races, made available on demand,” said Scott Daruty, the senior vice president of the Los Angeles Turf Club.
“These are the same legal horse racing bets as have been offered at California racetracks for years, including existing multi-race wagers, using real horse races under the same rules and governmental oversight.
“Racing On Demand is pari-mutuel pool wagering on the outcome of a horse race, which has been legal in California for generations. We're simply offering it on demand instead of waiting for specific race times. This gives fans the opportunity to wager on their own schedule.
“Bettors will wager on real horse races through self-service terminals, like they already do. All wagers are placed into a pari-mutuel pool. The same bet type, the same pool types, and the same rules, now delivered to fans on demand.”
If the Racing On Demand machines prove to be a hit, they could help solve what has been a huge problem for the California racing industry and Santa Anita in particular. California is the last major racing state that does not receive alternative revenue from casinos, slot machines, HHR machines, or government subsidies to prop up purses. The result has been that purses at the California tracks have fallen well short of those offered in places like Kentucky, Arkansas, and New York. This has affected field sizes at the Southern California tracks and has led some top trainers to set up divisions in Kentucky, where the purses have soared thanks to HHR machines.
There may still be questions that need to be answered regarding their legality. Under the state's current laws, Native American tribes hold a legal monopoly on casino-style gaming, specifically slot machines. The TDN reached out via email to the Indian Gaming Association for a comment and, at the deadline for this story, was awaiting a reply.
The Indian tribes suffered a rare defeat in the courts last fall, one that could ultimately by used by Santa Anita to state its case that the Racing On Demand machines are legal. Looking to close down card rooms, which the Indian tribes claimed were in violation of their exclusive rights to offer casino-style gambling in the state, the tribes did not prevail. A Superior Court judge dismissed the case.
Santa Anita management is expected to make the case that Racing On Demand machines do not infringe upon California Gaming tribal gaming exclusivity because state law grants tribes exclusive rights over casino wagering only on tribal lands. Racing On Demand is not a form of casino gaming. Rather, it is pari-mutuel horse racing conducted by a duly licensed and regulated operator, as authorized under state law. That may mean that it does not violate existing laws covering Indian tribes and their exclusive rights to operate casinos.
However, that is something that the courts may ultimately have to decide.
Sources told the Paulick Report that the Racing On Demand terminals are more advanced than a typical self-betting device but have fewer “bells and whistles” than the Historical Horse Racing machines in use in Kentucky and other states.
According to the Paulick Report, Racing On Demand wagering has been in development for nearly 18 months, and the Stronach Group, the owners of Santa Anita, has received legal analysis from the gaming and regulatory division of the O'Melveny & Myers law firm and have had discussions with regulatory officials that gave Santa Anita management the confidence to unveil the machines at this time. California Attorney General Rob Bonta's office was furnished the legal opinion well in advance, and the CHRB has been notified that Racing On Demand has been launched, Paulick wrote.
According to Daruty, The Stronach Group is confident it will not run into any problems when it comes to being granted approval for the Racing On Demand terminals when it comes to either the Attorney General's office or the CHRB.
“We shared our legal analysis with the AG's office over nine months ago. California law already permits this type of wagering, so a specific approval from the AG is not necessary,” he said. “As for the CHRB, they have already approved Santa Anita Park to conduct wagering on out-of-state simulcast signals and have already approved the Three-by-Three wager, which approvals cover the Racing On Demand activity.”
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