Photographs posted to social media Jan. 17 and confirmed by longtime Southern California reporters Kevin Modesti and John Cherwa appear to show law enforcement officials removing Santa Anita Park's recently installed "Racing On Demand" gaming terminals.
Modesti posted on X that the Department of Justice agents removed the machines Saturday afternoon, two days after Santa Anita rolled out 26 Racing On Demand terminals without formal public notice. The pari-mutuel devices, developed by PariMAX, a subsidiary of Santa Anita owner 1/ST Racing, base payouts on previously run horse races.
Before the shutdown, 1/ST Racing officials maintained the games were legal under California law, stating that the devices were pari-mutuel. The machines, which resemble slot machines but show horses on their terminal screens, offer a wager called "Three-by-Three," a $1 exotic bet approved by the California Horse Racing Board in April 2024. The CHRB approved that wager without the bet being pitched for intended use on previously run races.
Scott Daruty, senior vice president of 1/ST Racing, told BloodHorse Jan. 16 that the product was aimed at helping California racing remain competitive with states that benefit from alternative gaming revenue. California is the only major Thoroughbred racing state without such supplemental funding to aid purses.
A law enforcement evaluation was not unexpected, given opposition to the devices from area tribes, who operate casinos in the region; and anti-gaming forces.
“We stand firmly behind our legal analysis,” Daruty noted in a Saturday evening statement. “Racing On Demand operates under California's longstanding pari-mutuel wagering laws using a wager that regulators already approved. Attorney General 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.“
