A short-lived experiment involving betting kiosks and a California horse racing track didn’t last long before the state government intervened.
Santa Anita’s “Racing On Demand” gaming machines were confiscated by state officials two days after they were installed.
Key Takeaways
- Santa Anita’s ownership said it told the state one year ago that the machines were legal.
- Pari-mutuel betting on horse racing is legal in California.
- Tribal groups hold gaming exclusivity over most forms of gambling in California.
The 26 devices that were seized allowed users to place $1 “three-by-three” bets, in which they would choose the top three finishers in three separate races. The slot-machine-style interface was similar to horse racing terminals found in other states.
Santa Anita officials claimed that the machines represented legal pari-mutuel betting products and complied with state regulations since bets were combined into a crowdfunded pool, rather than staked against the house.
The California Department of Justice didn’t see it that way.
According to the Los Angeles Times, eyewitnesses at the track watched a representative of the Arcadia Police Department and members of the California Department of Justice Attorney General’s office enter the grandstands, unplug the machines, and roll them out on handcarts. The removal occurred after all of Saturday’s live-racing events had concluded.
News at Santa Anita: The track’s slots-style “Racing On Demand” gaming machines were removed this afternoon by California Department of Justice agents. The games’ legality was unclear as soon as they were installed Thursday. Seeking comment from Santa Anita and the DOJ. pic.twitter.com/yMlbmI2B2Q
— Kevin Modesti (@KevinModesti) January 18, 2026
Santa Anita later confirmed that the Attorney General’s office ordered the removal of the machines. Officials did not remove the money that had been used by customers to play on them.
The incident occurred after several tribal gaming leaders objected to Santa Anita adding the machines on Thursday.
Enjoying Covers content? Add us as a preferred source on your Google account“There was always only one outcome out of this,” Victor Rocha, conference chair of the Indian Gaming Association, told the Los Angeles Times. “They know it. I know it. Especially after what happened with sweepstakes and what’s currently happening with prediction markets.”
Santa Anita owner defends gaming machines
The weekend incident is another in a long list of controversies involving the gambling industry in California.
Tribal leaders have expressed opposition to most casino-style gambling formats, to which they hold exclusive rights, per the state’s gaming compacts. However, the Stronach Group, which owns Santa Anita, said it provided the attorney general’s office one year ago with information that proved gaming machines were legal under the current framework.
“We stand firmly behind our legal analysis,” Scott Daruty, senior vice president of the Stronach Group, said in a statement to the LA Times. “Racing On Demand operates under California’s long-standing pari-mutuel wagering laws using a wager that regulators already approved. Attorney General [Rob] Bonta received our comprehensive legal analysis nearly a year ago."
“His office had ample time to raise concerns," Daruty added. "They did not. We proceeded on solid legal ground, and since the state is choosing to challenge that now, we’re fully prepared to defend ourselves. We’re confident the law is clear.”
Despite the confident declarations, the tribes are prepared for any disputes involving their authority over various forms of gaming. One tribal representative told the LA Times that they were readying a “full-throated response.”
California’s evolving gaming landscape
California’s gaming industry has been under constant strain amid top-level changes and ongoing disputes between the tribes and other parties.
The tribes have spent years engaged in battle with California cardrooms over games such as blackjack and baccarat. Meanwhile, Attorney General Bonta issued an opinion that daily fantasy sports were illegal under California law and banned sweepstakes casinos last year.
Perhaps the biggest controversy yet involves prediction markets. The tribes, like many state gaming regulators, took the position that their sports event contracts mimicked sports betting, which California does not authorize.
