Attorney General’s fantasy sports decision leaves California tracks struggling for survival, with tribal leaders signalling strong resistance to gambling expansion.
California’s horse racing industry, already limping through a decade of decline, just hit another major roadblock. Hopes that Historical Horse Racing (HHR) machines might provide a financial lifeline were dealt a blow this month, following a key legal opinion from the state’s Attorney General and some pointed words from tribal leaders.
Atty. Gen. Rob Bonta’s rejection of a fantasy sports-style sweepstakes scheme has wider implications. It wasn’t just about fantasy games. It was a firm nod to California’s tribal gaming compacts and their powerful grip on legal gambling. And it sends a chilling message to racetracks clinging to the idea of HHR machines — a type of slot machine-style game that uses past horse races to determine outcomes — as their last, best shot at survival.
One ruling, many consequences
Bonta’s July ruling was supposed to settle a specific question: are daily fantasy sweepstakes legal in California?
The answer, in his view, was no. The structure of the games, he concluded, effectively amounted to gambling — and therefore violated state law unless operated by tribal casinos or authorised via ballot initiative. That might seem niche. But inside the horse racing world, the decision rang alarm bells.
In the same breath, Bonta reinforced the strength of tribal sovereignty, reminding everyone who really holds the cards when it comes to gambling rights in California.
The takeaway? If racetracks thought they could slip HHR machines in under the radar or treat them as something other than “slots,” they may need to think again.
Tribes are talking — and they’re not backing down
It’s rare to see California tribal leaders comment publicly on issues outside their usual policy lane. That’s why it raised eyebrows when Bo Mazzetti, chair of the influential Rincon Band of Luiseño Indians, weighed in directly on the issue of HHR machines. And he didn’t mince words.
“If these machines are allowed, it’s a direct violation of the tribal-state compacts,” Mazzetti said bluntly, adding that tribes “will take legal action” if necessary.
That statement matters. Mazzetti isn’t just another tribal leader. He’s well-connected, respected in Sacramento, and known for shaping behind-the-scenes negotiations. His comments were a shot across the bow — and a warning to the racing industry not to get too comfortable.
What are Historical Horse Racing machines anyway?
To understand why HHR machines are so controversial, you’ve got to understand what they actually are — and why they matter.
They look like slot machines. They feel like slot machines. But instead of spinning reels or digital animations, they use archived footage of past horse races to determine outcomes. The data is anonymised, so players don’t know which race they’re betting on.
Proponents say they aren’t really “gambling” in the legal sense. Opponents, including California’s tribes, call that argument nonsense.
Here’s why tracks love them:
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Revenue boost: They generate millions in other states
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Low barrier: Easy to install, attract new visitors
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Minimal upkeep: Lower operational costs than live racing
But none of that matters if the machines can’t pass legal muster in California — a state where gambling rights are tightly controlled and fiercely defended.
The numbers paint a grim picture
Horse racing is bleeding out — slowly, but steadily. Nationally, foal crops (the number of racehorses born each year) have shrunk dramatically. Purses have stagnated. Attendance is down. Betting interest has waned.
California’s numbers look particularly dire.
| Metric | 2010 | 2023 | Change |
|---|---|---|---|
| Foal crop | 2,900 | 1,200 | -59% |
| Live race days | 180+ | 105 | -41% |
| Average daily attendance | 9,000 | 3,800 | -58% |
That’s not a decline. That’s freefall.
Tracks like Santa Anita and Del Mar have trimmed racing calendars. Golden Gate Fields is shutting down altogether. And fan demographics? They’re older. Much older. The next generation hasn’t shown up.
Political hurdles only getting taller
Even if California’s horse racing officials push ahead with an HHR proposal, the odds aren’t good.
Tribal interests have already blocked gambling expansion via ballot initiative — twice. In 2022, duelling ballot measures from both tribes and commercial operators led to a political brawl. Over $450 million was spent on ads, lobbyists, and outreach. Voters, overwhelmed and frustrated, shot both measures down.
Lawmakers have also grown wary. No one wants to get caught in the crossfire between racing operators and tribal casinos. And with the economy showing signs of instability, gambling reform just isn’t top of mind.
The political will simply isn’t there.
The future looks… uncertain
So what happens now?
Industry insiders say the path forward is murky. Some tracks might push for another ballot measure. Others could try lobbying for narrowly written legislation. But without tribal backing, either option looks shaky.
One track executive, speaking anonymously, admitted: “We’re running out of time. And options.”
That’s the uncomfortable truth. HHR machines might have worked. But without legal clarity — and with tribal resistance so strong — the window may have already closed.
