Santa Anita Adds 'Racing On Demand' Machines at Track

Santa Anita Park on Jan. 15 quietly unveiled 26 "Racing On Demand" gaming terminals that base payouts on previously run horse races. Paulick Report was the first to report the addition of the Racing On Demand games. Officials with Santa Anita Park owner 1/ST Racing are confident that the games, developed by the owner's PariMAX subsidiary, are legal under California law. On Jan. 16 BloodHorse obtained a letter dated Jan. 15 from Santa Anita (Los Angeles Turf Club) officials to the California Horse Racing Board announcing its intention to offer, "import simulcast wagering on on-demand races... This activity is referred to by LATC as 'Racing On Demand.'" The letter adds that the specific wager to be offered is the "Three-by-Three." The letter notes that the LATC has shared a legal analysis with the CHRB and the California attorney general that finds that state law permits Racing On Demand. Scott Daruty, a senior vice president with 1/ST Racing, said the new pari-mutuel gaming would provide additional revenue to compete with other tracks throughout North America. California is the only major Thoroughbred racing state without alternative gaming revenue or direct state support for purses and track operations. Santa Anita purses have fallen behind many United States tracks where added gaming has fueled higher purses. "It's essential," Daruty said of the added revenue. "We are competing with other tracks that have casinos or other added-gaming options that provide money for the tracks and help them offer better purses. We want to do all we can for Santa Anita Park." The introduction of the devices, which came without formal publicity or notice from Santa Anita, appears likely to face legal or political challenges from tribal interests in California and review by state or local law enforcement. Native American tribes control much of the state's gaming and have a powerful political lobby, which, along with other factors, including opposition from anti-racing animal groups, has contributed to the state's inability to secure legislation authorizing purse-bolstering gaming at the state's tracks. Santa Anita is confident the games are legal. "Racing On Demand is pari-mutuel pool wagering on the outcome of a horse race, which has been legal in California for generations," Daruty said. "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." While there figures to be external opposition, added gaming does have support from within the industry. The Thoroughbred Owners of California's latest race-meet agreement with Santa Anita even hinted at expansion, with a section of the agreement authorizing "Wagering on Concluded Races" with the consent of the TOC and the CHRB. The TOC wrote that it "hereby consents for Track to have at Santa Anita Park up to forty (40) self-service totalizator terminals that facilitate wagering on concluded races." The Racing On Demand devices, which resemble slot machines in appearance but show horses on their displays, offer $1 bets as players attempt to select the first three finishers in three consecutive previously run races. A picture issued from Santa Anita Friday showed Hall of Fame trainer Bob Baffert, who bases his stable at Santa Anita, seated at one. All the wagers are pooled, and payouts are determined by the collective betting results. As noted in the letter, the bet is based on a wager approved by the CHRB in April 2024 called the Three by Three. But when the board approved the wager, the bet was not pitched specifically as a gaming-terminal bet. For example, commissioners at the time asked Daruty whether pari-mutuel clerks would be adequately trained to properly take the wagers. In reference to the bet, Daruty said at the time that they were "not expecting it to be wildly successful, but we want to try it." Unlike traditional multi-race wagers such as the Pick 6, which typically offer one major pool and a single minor pool, this wager can have a major pool of around $10,000 and multiple minor pools. Daruty told the board in April 2024 that the wager would carry a listed takeout of 22%, though it would feature a lower effective takeout. Historical horse racing gaming typically has a smaller takeout. Scott Chaney, executive director of the CHRB, did not return multiple messages seeking comment on the introduction of the devices and whether they are authorized under California law and regulations. Wagering on historical races was first introduced by Oaklawn Park in Arkansas in 2000 and eventually would be called "Instant Racing," providing the track with a way to remain competitive with casinos in nearby states. The model proved instrumental in strengthening purses and stabilizing racing operations, eventually becoming a foundation for Oaklawn to secure state authorization for a full casino. Historical horse racing gaming later became wildly successful in Kentucky and Virginia. When Kentucky introduced it, it came under prolonged legal challenges, and the Supreme Court of Kentucky ultimately ruled that some forms of HHR gaming were unconstitutional. As a result, Kentucky legislators had to be persuaded to modify the state's horse racing law to affirm HHR as a form of pari-mutuel betting. HHR gaming has since led to sizable profits for track operators and the explosive growth of purses in the state, supporting Kentucky's breeding and racing infrastructure. In Oregon, entities that would become 1/ST Racing owned the racing license of Portland Meadows. That track featured pari-mutuel machines for a couple of years, but they were removed after a political back-and-forth that included a letter from the state's attorney general stating that the games were illegal. The track would be closed in 2019, but even as recently as 2023, an audit found language on the legality of the machines in the state to be ambiguous. In Minnesota, historical horse racing was briefly approved by the Minnesota Racing Commission in 2024, only to be halted weeks later when lawmakers enacted legislation banning the machines. California's rollout occurs against a similarly complex political backdrop as Minnesota's. Tribal governments hold rights over most non-pari-mutuel gaming in California, and whether Racing on Demand terminals constitute pari-mutuel wagering or unauthorized gaming remains a to-be-decided question. A Santa Anita spokesperson declined to provide the betting totals generated by the devices Thursday, describing the unveiling as a soft launch.