The conflict between California and Santa Anita Park over new gambling machines escalated on Wednesday when four prominent labor unions sent a letter to Attorney General Rob Bonta, demanding the state return the devices confiscated last Saturday. Alongside this, the city of Santa Anita filed a lawsuit on Tuesday seeking the same outcome.
The unions involved—the Service Employees International Union, the Teamsters, the California Pipe Trades Council, and the state association of Electrical Workers—showed their unity with a specially designed letterhead featuring all their logos. Their two-page letter, obtained by The Times, sharply criticized the state’s action to remove Racing on Demand machines, calling it “not only misguided, but reckless.”
The letter warned that removing these terminals introduces unnecessary uncertainty to an already economically challenged industry. It claimed the decision would harm innovation, reduce investment, and threaten the $1.7 billion yearly economic impact that California horse racing provides to communities, workers, and the state.
The seizure occurred after 21 agents from the state’s Department of Justice and two Arcadia police officers confiscated 26 Racing on Demand machines and the cash they contained on Saturday. The state, overseeing nearly all non-parimutuel gambling following these raids, appears to side with California tribes opposing the machines, which include casino-style gambling like table games and slot machines.
Santa Anita, as well as Del Mar and Los Alamitos, argue that the game operates on machines resembling slot machines but functions differently. Bets are pooled among players and payouts depend on the wagers made on various combinations. The house—in this case, Santa Anita—provides front-end funding but does not influence the profits.
The track aims to use revenues from these machines to increase race purses, currently a significant financial strain on California horse racing. Many other states, including Kentucky and New York, channel casino earnings to support their horse racing industries.
Currently, the payout rate on a 3 X 3 game, where players pick first, second, and third place finishes in three races, is 22%, meaning 78% of bets are returned to players.
This article originally appeared in the Los Angeles Times.
Fan Take: This dispute is crucial for horse racing fans because it highlights the ongoing struggle to find sustainable funding for the sport. If Santa Anita successfully reintegrates these machines, it could help boost purse sizes and secure the future of racing in California, benefiting everyone connected to the industry.
