Santa Anita’s ‘Racing On Demand’: A Gamble on the Future of Horse Racing?
A quiet revolution is underway at Santa Anita Park. Patrons arriving for recent races encountered something new: “Racing On Demand” terminals. These aren’t your typical betting windows. They offer a way to wager on previously run races, a concept gaining traction across the US racing landscape, and potentially a lifeline for California’s struggling racing industry.
What is Racing On Demand and Why Now?
Racing On Demand (ROD) machines, similar to Historical Horse Racing (HHR) machines found in states like Kentucky and Arkansas, allow bettors to play the odds on races that have already concluded. The key difference, as Santa Anita officials emphasize, is that these are still pari-mutuel wagers on real horse races, governed by the same rules and oversight as traditional betting. “We’re simply offering it on demand instead of waiting for specific race times,” explains Scott Daruty, Senior Vice President of the Los Angeles Turf Club. This flexibility caters to a modern audience seeking convenience.
The timing is crucial. California is unique among major racing states in lacking alternative revenue streams like casino gaming or substantial government subsidies. This has led to significantly lower purse sizes – the total amount of money awarded to horse owners – compared to states benefiting from HHR. Lower purses mean fewer horses, smaller fields, and a potential exodus of trainers and owners seeking richer opportunities elsewhere. Kentucky, for example, saw purse money boosted by over $100 million annually thanks to HHR, attracting top talent and revitalizing its racing scene. (Paulick Report)
The Legal Tightrope: Tribes and the Future of Gaming
The introduction of ROD isn’t without potential legal hurdles. California’s Native American tribes hold exclusive rights to casino-style gaming. The question is whether ROD machines constitute casino gaming. Santa Anita’s legal team, backed by O’Melveny & Myers, argues they do not. Their stance hinges on the fact that ROD is pari-mutuel wagering on horse races, a practice already legal in California, and doesn’t involve the same type of chance-based gaming as slot machines.
A recent court case offered a glimmer of hope. Last fall, California tribes lost a case attempting to shut down card rooms, arguing they violated their exclusive gaming rights. The Superior Court judge dismissed the case, potentially setting a precedent that could support Santa Anita’s argument. However, the Indian Gaming Association has yet to comment, and a legal challenge remains a distinct possibility. The outcome will likely depend on how the courts interpret the distinction between pari-mutuel wagering and casino-style gaming.
Beyond Santa Anita: A National Trend?
Santa Anita isn’t alone in exploring alternative revenue streams. Across the country, racetracks are grappling with declining attendance and wagering. HHR machines have proven remarkably successful in states like Kentucky, Arkansas, and Louisiana, generating significant revenue for purses and track operations. However, HHR has also faced scrutiny, with some questioning its classification as horse racing and its potential impact on problem gambling.
The Racing On Demand model, as implemented at Santa Anita, appears to be a more conservative approach, aiming to leverage existing pari-mutuel infrastructure. If successful, it could pave the way for similar initiatives at other California tracks and potentially inspire a national conversation about modernizing horse racing wagering.
Did you know? The Stronach Group, owners of Santa Anita, spent nearly 18 months developing the Racing On Demand system and securing legal counsel before launch.
What’s Next for Racing On Demand?
Currently, 26 ROD terminals are operational at Santa Anita. The track hasn’t announced a firm number for future expansion, but the goal is clear: to generate enough revenue to significantly boost purses. The California Horse Racing Board (CHRB) and Attorney General Rob Bonta’s office have been notified of the launch, but it’s unclear whether official consent has been granted. The coming months will be critical in assessing the popularity of ROD and navigating the potential legal challenges.
Pro Tip: Keep an eye on field sizes at Santa Anita. An increase in field sizes, driven by higher purses, would be a strong indicator of ROD’s success.
FAQ: Racing On Demand
- What is Racing On Demand? It’s a system allowing bettors to wager on previously run horse races through self-service terminals.
- Is it legal? Santa Anita believes it is, arguing it falls under existing pari-mutuel wagering laws. However, its legality could be challenged.
- How does it benefit horse racing? It aims to increase purse sizes, attracting more horses and trainers to California.
- Is it the same as Historical Horse Racing? Similar, but ROD emphasizes it’s wagering on real races with existing rules, while HHR can sometimes involve more complex game mechanics.
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