Santa Anita Park in California recently introduced new “Racing on Demand” betting machines that allowed wagers on past horse races, but the state’s Department of Justice swiftly seized the machines and the money inside, prompting Santa Anita to file a lawsuit demanding their return. The track claims it had legal approval and communicated extensively with regulators, including the California Horse Racing Board and the DOJ, about the legality of these parimutuel bets, which differ from traditional Class III gaming controlled by state tribes. Labor unions have criticized the seizure, arguing it harms an industry vital to California’s economy and stifles innovation.
This conflict highlights ongoing tensions between California’s horse racing interests and powerful state gaming tribes, who hold exclusivity over traditional casino gaming and sports betting. Attorney General Rob Bonta, facing reelection in 2026, has been scrutinized for his close ties to tribal gaming interests and has taken actions perceived as favoring tribes, such as cracking down on daily fantasy sports and sweepstakes gaming. Meanwhile, emerging challenges like prediction markets are further complicating the regulatory landscape, with tribes pushing back against platforms they see as encroaching on their gaming rights, underscoring a broader struggle over the future of gambling regulation in California.
