California’s horse racing industry, despite the state’s large population and economy, is struggling compared to other regions due to the lack of supplemental revenue streams like casino gaming or historical horse racing (HHR) machines that bolster purses elsewhere. Tracks like Santa Anita, Los Alamitos, and Del Mar operate with limited funding, resulting in lower purses and fewer horses racing, which drives owners and trainers to compete in states like New York and Kentucky where additional gaming revenue supports higher payouts. Santa Anita recently attempted to introduce a new HHR format called “Racing on Demand” to improve financial sustainability, but state officials quickly shut it down and confiscated the machines, leading to a legal battle.

The decline of California racing threatens not only the livelihoods of thousands of industry workers but also the future of iconic venues such as Santa Anita and Del Mar. California accounts for about 20% of national horse racing wagering, making its survival critical to the sport’s overall health. Industry leaders and labor unions are urging state officials to reconsider their stance on gaming devices to support the sport’s sustainability. Without changes, the loss of California racing could have widespread negative impacts on the national horse racing ecosystem, diminishing both economic opportunities and historic racing venues.