California Horse Racing’s Biggest Hurdle: The Lack of Alternative Gaming
California horse racing is in trouble, and the biggest reason isn’t just declining attendance or competition from sports betting—it’s the lack of alternative gaming revenue. While other states have bolstered their purses with casino-style gaming, California tracks remain at a major disadvantage. Without slot machines or historical horse racing (HHR) terminals to generate additional revenue, the industry is fighting an uphill battle.
With the closure of Golden Gate Fields in 2024, the state’s racing circuit is shrinking, and the pressure on remaining tracks like Santa Anita, Del Mar, and Los Alamitos is growing. If California wants to keep horse racing alive, it must look at what has worked elsewhere—particularly the success of HHR machines in states like Kentucky and Virginia.
Why California Racing is Falling Behind
In states like Kentucky, Arkansas, and New York, racetracks benefit from alternative gaming, particularly slot machines and HHR terminals. This added revenue flows directly into purses, making racing more attractive for owners, trainers, and bettors. California, however, has no such safety net.
The reliance on parimutuel wagering alone has left purses stagnant, making it difficult to compete with tracks in other jurisdictions. When trainers and owners can race for significantly higher purses in places like Kentucky, Florida, or Louisiana, it’s no surprise that California is losing horses and stables.
The Success of HHR Machines in Other States
Historical horse racing (HHR) machines have been a game-changer in states that have implemented them. These machines, which allow players to bet on past horse races with slot-like interfaces, have driven millions of dollars into purses in states like Kentucky and Virginia.
- Kentucky: HHR machines have completely revitalized the racing industry, fueling record-breaking purses at Churchill Downs, Keeneland, and Kentucky Downs.
- Virginia: Colonial Downs has seen a racing renaissance thanks to HHR, with significantly increased purses attracting quality fields.
If California were to legalize HHR, it could inject much-needed revenue into the industry without full-scale casino gambling. This could help stabilize the purse structure, retain horsemen, and prevent further track closures.
Track Closures and the Looming Real Estate Threat
The shuttering of Golden Gate Fields is a massive blow to California horse racing. Northern California has had a rich racing history, but without alternative gaming revenue, keeping the track open became unsustainable. The loss of Golden Gate means fewer opportunities for owners, trainers, and jockeys—pushing many to leave the state entirely.
But the bigger problem? The land these racetracks sit on is incredibly valuable.
- Golden Gate Fields is prime Bay Area real estate, making its sale for redevelopment almost inevitable.
- Santa Anita’s massive acreage in Arcadia would be worth billions if converted into commercial or residential property.
- Los Alamitos, already in survival mode, could be next.
If California racing continues to struggle financially, track owners will have every reason to sell these properties for their land value rather than keep running an unprofitable racing operation. Once those tracks are gone, they aren’t coming back.
What Needs to Happen?
If California wants to remain a major player in horse racing, it must:
✅ Push for HHR Machines: The industry needs to lobby hard for the approval of historical horse racing machines, following the successful models in Kentucky and Virginia.
✅ Find New Revenue Streams: With sports betting still in limbo, the state must explore ways to diversify wagering options and generate additional revenue for purses.
✅ Retain Owners and Trainers: The loss of stables to other states is an existential threat. Bigger purses from alternative gaming could help keep them in California.
✅ Protect Racetrack Land from Development: Racing stakeholders must work to ensure that racetracks don’t get sold off to the highest bidder. Once a track closes, it’s nearly impossible to bring it back.
Final Thoughts: Can California Racing Survive?
The window for saving California horse racing is closing fast. Without alternative gaming, racing will continue to shrink, and the loss of more tracks is almost inevitable. HHR machines offer a proven solution, and if the state doesn’t act soon, California could go from being a horse racing powerhouse to a cautionary tale.
The fans, the horsemen, and the history deserve better. It’s time for California to step up and give horse racing a fighting chance.
