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Santa Anita’s Secret Gambling Machines Spark Legal Battle Over California Betting Laws

Hidden from public view, these slot-like machines are rewriting the rules of horse race betting. Now, tribes and regulators are fighting back.

The image shows a horse race track with horses and jockeys on it, surrounded by lush green grass,...
The image shows a horse race track with horses and jockeys on it, surrounded by lush green grass, white railings, banners with text printed on them, poles, trees, buildings, and a hill in the background with a sky full of clouds.

Santa Anita Park has quietly introduced 26 new betting machines that let gamblers wager on past horse races in California. The terminals, which resemble slot machines, were installed without public announcement or regulatory notice. Their arrival has already sparked a dispute over whether they break California’s gambling laws.

The machines, known as Racing on Demand, allow bets on recorded races rather than live events. They feature minimal handicapping details and operate like slot machines, raising questions about their legality. Under state law, if the terminals are deemed games of chance, they would fall under the exclusive control of Native American tribes in California.

The Thoroughbred Owners of California had previously approved up to 40 such terminals for wagering on concluded races. Santa Anita, however, moved ahead with 26 machines, using a betting loophole called the three-by-three bet to justify their use. The California Horse Racing Board claimed it had no prior knowledge of the installation. Victor Rocha, president of the Indian Gaming Association, called the machines illegal gambling. He warned that tribes would respond strongly if the terminals violated their rights. The dispute centres on whether the machines qualify as pari-mutuel wagering—a game of skill—or an illegal game of chance. The new terminals operate only after 11 a.m. on live racing days. Despite their rollout, Santa Anita did not announce the change in its racing newsletter or issue a press release.

The machines are now in use, but their future remains uncertain. Legal challenges from tribes could force their removal if courts rule they violate gambling laws. The California Horse Racing Board may also review their compliance with existing regulations.

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