Santa Anita Challenges California After Seizure of New Gaming Machines
Background of the Seizure
Recently, authorities in California confiscated new gaming machines at Santa Anita Park, a renowned thoroughbred horse racing venue, just two days after their installation. While tribal gaming groups praised this action, representatives from Santa Anita argue that the seizure lacked legal merit and have initiated legal proceedings against the California Department of Justice.
Details About the Confiscated Machines
On January 15, Santa Anita Park introduced experimental Racing on Demand terminals. These devices function similarly to historical horse racing terminals (HHR), allowing players to place bets on past horse races. The wagering occurs in a pari-mutuel system, meaning participants bet against each other rather than against the casino.
Santa Anita officials maintain that because the machines operate within a pari-mutuel framework, they fall under the regulatory jurisdiction of the California Horse Racing Board. However, this interpretation was contested by both tribal authorities and state officials.
Consequently, the Department of Justice (DOJ) seized 26 of these terminals along with the cash contained inside, which disappointed Santa Anita but was welcomed by tribal operators. The DOJ stated that unless directed otherwise by a court, the machines will be destroyed within 30 days.
Tribal leaders viewed this enforcement as a predictable response to attempts by commercial entities to introduce new gaming products that might infringe on tribal gaming interests.
In contrast, the parent company of Santa Anita, The Stronach Group, contends that the DOJ’s actions were unjustified.
Legal Action and Arguments by Santa Anita’s Ownership
The Los Angeles Turf Club, which manages operations at Santa Anita Park, has submitted a lawsuit to the Los Angeles Superior Court challenging the DOJ’s seizure. They argue that the agency lacked proper legal grounds to confiscate the 26 machines and the cash inside.
The comprehensive 52-page complaint outlines that the machines comply with the pari-mutuel rules overseen by the California Horse Racing Board, which had previously approved the machines’ format without objection. The complaint further notes that the Attorney General’s office did not raise any legal concerns about these devices before their installation.
The lawsuit aims to stop the planned destruction of the gaming terminals and to have them reinstated for use at Santa Anita Park.
On the other hand, critics highlight the strong similarities between these Racing on Demand machines and traditional slot machines, suggesting that they may have been deliberately designed to evade California’s gaming regulations and bypass tribal exclusivity rights concerning slot gaming.
