During its monthly meeting April 18, the California Horse Racing Board enthusiastically approved a new horse racing wager at Santa Anita Park during a time of slumping pari-mutuel wagering in the state.
The new wager, called the "Three by Three," tasks the bettor with selecting the top three finishers in three separate races in precise order. Offered in $1 denominations, it would offer a carryover of a "major share" if there is no winner, with five "minor shares" offered for those selecting eight correct horses, seven horses, and down the line.
Computer-assisted wagering bettors would not be permitted to wager into the pool, Scott Daruty, president of the Monarch Content Management, told commissioners. He said officials are "not expecting it to be wildly successful, but we want to try it."
Monarch Content Management and Santa Anita Park are owned by The Stronach Group, whose racing interests operate as 1/ST Racing.
The "Three by Three," scheduled to be introduced in the coming weeks, will be available via wagering services using AmTote, a tote provider owned by TSG. Tracks in California and Xpressbet, TSG's advance-deposit wagering company, would be able to participate, Daruty indicated.
Though takeout for the wager is high at 22%, Daruty said, "We believe the effective takeout for the retail player will be lower than that given various guarantees. For example, the major pool will be guaranteed at $10,000 every day."
He said when other tote companies invest in the necessary programming to offer the wager, they could participate in the bet.
CHRB FISCAL YEAR 2024-25 FUNDING
Also Thursday, the CHRB was updated on an April 16 meeting among stakeholders on potential revisions to the format in which the state regulator would receive budget funding for its fiscal year in 2024-25. Southern California tracks pay a disproportionate share of the cost of operations for the CHRB, a model they would like to see altered.
"The bottom line is this—that the formula that we use right now, by handle, in the words of (Del Mar president) Josh Rubinstein: it's unequal,'" acknowledged Larry Swartzlander, executive director of the California Authority of Racing Fairs.
Swartzlander, however, cautioned against providing an "unnecessary burden on Northern California if we automatically switch."
Golden State Racing, to race in Northern California this fall at Pleasanton after the summer fairs and TSG's planned closure of Golden Gate Fields in June, is in the infancy of its racing development.
Stakeholders met April 16 in advance of the CHRB meeting.
"Now there was agreement within the group at the first meeting to reduce the fiscal year budget formula to the first six months, where there is a higher degree of certainty regarding the number of race days, number of races, and handle projections," Thoroughbred Owners of California president and CEO Bill Nader said.
The comments to the CHRB were for informational purposes, not for the basis of board action Thursday.
"Definitely not ideal timing, but probably because of the tough economic situation is why this is coming up," CHRB executive director Scott Chaney said. "So hopefully the committee (of stakeholders) will be able to figure something out, and the board won't have to be involved."
In remarks toward the end of the one-hour meeting, Chaney noted in his report that handle is down 4% in California over the first quarter of 2024, and CHRB equine medical director Dr. Scott Blea reported seven equine fatalities at CHRB facilities in March: four in training, one during racing, and two unrelated to exercise.
