California state law enforcement confiscated 26 newly installed historical horse racing (HHR) machines at Santa Anita Park on Saturday, shutting down the slot‑style terminals only 48 hours after they were first powered on.
The machines—branded “Final Stretch”—allowed bettors to wager on previously run horse races using a $1 “three‑by‑three” exotic bet. The terminals had been installed in the former Horse Wizard Lounge on the grandstand’s ground floor.
State Says Machines Are Illegal; Track Says They’re Parimutuel
Santa Anita officials argue the machines are legal under California’s long‑standing parimutuel wagering laws, describing them as “racing on demand” terminals that use a wager already approved by regulators.
California Attorney General Rob Bonta’s office disagrees.
On Saturday afternoon, agents from the California Department of Justice raided the track—home of the Santa Anita Derby and Santa Anita Handicap—and seized the machines, asserting they constituted illegal gambling devices.
The move came after California’s federally recognized tribes objected to the installation. Tribes hold exclusive rights to operate slot machines on their sovereign lands under Class III gaming compacts, and have historically opposed any expansion of slot‑style gaming outside tribal casinos.
Santa Anita Defends Its Position
Santa Anita’s owner, The Stronach Group, maintains that the machines comply fully with state law.
“We stand firmly behind our legal analysis,” said Scott Daruty, senior vice president of The Stronach Group. “Racing On Demand operates under California’s long‑standing parimutuel wagering laws using a wager that regulators already approved. Attorney General Bonta received our comprehensive legal analysis nearly a year ago.”
Daruty added that the AG’s office had “ample time” to raise concerns before the machines were deployed.
“We proceeded on solid legal ground,” he said. “Since the state is choosing to challenge that now, we’re fully prepared to defend ourselves. We’re confident the law is clear.”
Daruty also emphasized that HHR gaming is essential to “the sustainability of the California horse racing industry.”
How the Machines Worked
The “Final Stretch” terminals offered a three‑by‑three wager requiring bettors to pick the first three finishers in three consecutive historical races.
Payouts ranged from:
- $2.98 for correctly selecting three or four finishers
- Up to $10,000 for picking all nine finishers in order
The California Horse Racing Board approved the three‑by‑three wager in April 2024, but at the time did not realize it could be used to power HHR gaming terminals.
Court Battle Likely Ahead
The legality of HHR gaming in California now appears headed for the courts.
Instant racing machines are permitted in several states where lawmakers have explicitly authorized them, including:
- Alabama
- Arkansas
- Kansas
- Kentucky
- New Hampshire
- Virginia
- Wyoming
California has no such statute.
Santa Anita Park, which opened in 1934, has hosted more Breeders’ Cup events than any other racetrack—most recently in 2023, marking its 11th time as host.
