ARCADIA — As suddenly as Santa Anita installed slot-style gaming machines, California Department of Justice agents swept in and removed them Saturday, leaving serious doubt about California horse racing’s hope for a revenue lifeline.
Uniformed agents were seen late Saturday afternoon wheeling machines away from the area of the grandstand where more than two dozen “Racing On Demand” terminals had been unveiled Thursday.
A DOJ spokesperson said the action was taken under a California penal code allowing seizure of machines that violate state law prohibiting some forms of lottery or gaming, but did not immediately explain how specifically Santa Anita’s terminals are illegal.
A notice from the DOJ warned Santa Anita of “intention to destroy machines and devices” within 30 days unless action is taken in court to recover them.
Santa Anita issued a statement Saturday night, attributed to Los Angeles Turf Club senior vice president Scott Daruty, saying it stands by its position about the machines’ legality.
“Racing On Demand operates under California’s longstanding pari-mutuel wagering laws using a wager that regulators already approved,” Daruty said. “Attorney General (Rob) 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.”
The machines offered fans the chance to play horse-racing-themed games using minimal information to try to pick 1-2-3 finishers in previously run races.
Santa Anita executives said Thursday that the games were designed to stay within California law and tribal gaming exclusivity by having patrons wager against each other parimutuel-style in a common pool instead of against the “house” as in a casino.
Santa Anita and many people who compete in horse racing in California, hoped “Racing On Demand” would be an answer to the “Historical Horse Racing” machines that tracks in other states have used to boost revenue and increase purses.
“California racing is struggling. I don’t think that’s a secret,” Daruty had said Thursday. “We’ve got to come up with some additional ideas and additional revenue streams. This is a product we’ve spent a lot of time designing to be compliant with California law.
“These games, as you see them, have never been in play anywhere else. They were designed specifically for here. Hopefully its something that leads to the long-term stability of racing.”
The DOJ action came near the end of Santa Anita’s California Cup day racing card. Racing continues Sunday.
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