California horse racing faces a dire financial future, with declining attendance, shrinking purses, and an aging fan base pushing the industry toward extinction. To address these challenges, industry leaders have sought to introduce Historical Horse Racing (HHR) machines—slot-like gambling devices that could generate supplemental revenue to boost purses and attract participants. However, the effort has been stymied by the powerful influence of Indigenous tribes, who hold exclusive rights to most forms of gambling in California under state law and tribal sovereignty upheld by Attorney General Rob Bonta. The tribes strongly oppose the introduction of HHR machines without their involvement, viewing it as a threat to their gaming exclusivity, and are prepared to legally challenge any attempts to bypass them.

Negotiations between horse racing interests, led by groups including The Stronach Group, and the tribes have been limited and secretive, with little progress reported. The California Horse Racing Board (CHRB) supports purse supplements but faces political and regulatory hurdles in approving HHR machines. Experts and tribal leaders alike express skepticism about the viability of saving horse racing through HHR alone, citing the industry’s structural decline and lack of sufficient betting interest. Without a cooperative deal with the tribes or a legislative solution, the outlook for introducing HHR machines—and thus stabilizing California horse racing’s financial future—remains bleak.