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Los Angeles Times
2 days ago
- Business
- Los Angeles Times
Historical Horse Racing machines key to the sport's future in California are in peril
California horse racing, struggling to stay afloat, got a stark reminder how uphill its battle is to add a new form of supplemental income this month when state Atty. Gen. Rob Bonta ruled against daily fantasy sweepstakes. The decision underscored the power of Indigenous tribes when it comes to gambling in California. Bonta's ruling upholding tribal sovereignty, in conjunction with rare public comments from an influential tribal leader, puts the idea of Southern California getting Historical Horse Racing machines to bolster purses in worse shape. The sport has been in decline nationally. Dwindling foal crops, shrinking purses and a stagnant and aging fan base has pointed to California racing being on the edge of extinction. Mutuel handle, the amount of money bet, at Santa Anita this past meeting was marginally up mostly because the track's parent company killed its northern California track, Golden Gate Fields, and the California Horse Racing Board (CHRB) in conjunction with the Thoroughbred Owners of California, facilitated the end of fair racing in Northern California. The idea was that the money normally bet in Northern California, or acquired through simulcast wagering, would then be redirected to the south, so that Santa Anita and Del Mar could increase its daily purses. The solution to these problems was identified a few years ago: The sport needs to get Historical Horse Racing, which looks, feels and sounds like a slot machine, so that revenue generated by the machines could be put into purses that would attract more trainers and owners to California. The question everyone keeps asking is: What is the industry doing to get Historical Horse Racing? In February, The Times outlined five pathways to adding Historical Horse Racing in California. Now only one or two seem viable. The group that is running point on adding the machines is made up of former CHRB chair and Santa Anita official Keith Brackpool, now a consultant; Aidan Butler, president of 1/ST Racing, also known as The Stronach Group (TSG); Scott Daruty, a senior executive at TSG; Josh Rubinstein, president of the Del Mar Turf Club; and Bill Nader, president and chief executive of the Thoroughbred Owners of California. The options earlier this year were: work a deal with the tribes; roll out a limited number of machines at the tracks and ask for permission later; install up to 1,000 machines at the tracks without permission; seek legislative or ballot initiative help; or negotiate with a single tribe instead of all of them. The tribal nation's control of California gaming is solid both legally and culturally. In 1988, Congress passed the Indian Gaming Regulatory Act and ceded all authority over gaming on tribal lands to the states in which they reside. California passed laws that allowed only five types of gambling: American Indian casinos, which are allowed to have Las Vegas-style table games (except roulette) and slot machines; card clubs; charitable gambling (church bingo); the state lottery and pari-mutuel wagering connected to horse racing. In 2000, voters passed Proposition 1A, which exclusively gave the right to use slot machines to the tribes. In 2004, a state ballot initiative that would have allowed the expansion of non-tribal gambling was defeated 84% to 16%. And Bonta ruled against daily fantasy sweepstakes, reiterating the state's position on gaming. 'While the California Nations [Indian] Gaming Assn. commends Atty. Gen. Rob Bonta for standing up for the rule of law in California, it is also very clear that California has long turned a blind eye to illegal gambling — at the direct expense of tribal governments,' association chairman James Siva said. 'Untold millions if not billions have been illegally wagered over the past decade. Where is the enforcement? Where is the accountability?' This is not the ideal moment for the tracks and tribes to work out a deal. 'The chances of horse racing ramming something past the tribes is slim and none,' said Victor Rocha, conference chair of the Indian Gaming Assn. Rocha spoke to The Times as owner and publisher of a website designed to give tribal members the latest news on politics and gaming, rather than as chair of the IGA because the IGA has a separate spokesperson. 'There are times that we work together [with the tracks,] but then there are groups like The Stronach Group who try and push things through, which is the definition of a fool's errand,' Rocha said. 'Let's just say they are very ambitious,' he said. 'But I would say they don't have enough juice or enough power. They don't have enough people who care. The average age of a horse player is decomposing. This would be a desperate act by a desperate company.' The Stronach Group did not respond to The Times' requests for comment. There were no responses to multiple requests to interview Brackpool, Daruty and the attorney general. Rocha questions the value of negotiating with horse racing leaders. 'The whole argument that [Historical Horse Racing machines] will save horse racing is false,' Rocha said. 'The only thing that can save horse racing is the second coming. Can anything save horse racing? The answer is no. If you look across the country and the modern day racino [a casino and race track with shared financial interest on the same property], you see it's not about the horses. It's about the bottom line of the owners. 'It is a dying industry. They are going to have to get a ballot initiative or go through the tribes. The tribes have exclusivity for Class 3 gaming in California. And we will protect our exclusivity. The attitude is, if they go down that path [without us,] there will be a fight.' Historical Horse Racing machines are generally set up with an 8% takeout, the money that is kept by the operators and not returned to the bettors. Rocha was asked about a scenario in which 1% goes to the California breeders, 3% to racing purses and the tribes keep the remaining 4%. 'I don't know if there is a deal to be made,' Rocha replied. Adding to the frustration of the horsemen and horse players is the lack of information coming from the tracks on how they plan to address this issue and secure their future. Rocha, who checked with others in tribal groups before answering the question, said he is unaware of any contact between the tribes and the group put together to secure Historical Horse Racing. His account conflicts with what Butler, president of The Stronach Group, told The Times in May. 'I believe there are a lot of ongoing talks with industry partners,' Butler said. He added there have been conversations with a few of the tribes about the issue. Butler attributed the lack of information coming out of his working group to the sensitivity of the topic. 'You can't litigate or negotiate in the media,' Butler said. 'Some of the these are very, very delicate. You've got casinos, you've got tribal interests, you've got big gaming interests. Anything you do has to be so tactfully thought through. You'd love to say we're doing this or we're doing that, but the bottom line is anytime you put a statement out there, it's dangerous to the overall strategy. Context is everything. You don't want to say anything that a potential future partner or non-partner could get the wrong idea.' The Times talked to almost two dozen people working in the horse racing industry in search of more details about the group's actions, and none could provide insight. All members of the working group have signed a nondisclosure agreement. The CHRB is not involved in the discussions but would be the regulator that oversees Historical Horse Racing should it ever come to fruition. A little talked about option would be for a track to put forth an agenda item about adding the machines, and the CHRB could mostly rubber stamp it. In 1983, state Atty. Gen. John K. Van de Kamp, who went on to lead the Thoroughbred Owners of California, issued an opinion that said: 'The Legislature's delegation of authority to the Board covering all aspects of horseracing has been upheld by the Supreme Court.' The opinion referenced was the 1961 Supreme Court decision in the Flores vs. Los Angeles Turf Club. At issue was not HHR, which hadn't been invented, but the ability of tracks to offer horizontal wagers such as the Pick Six and not have it viewed as a 'sweepstakes,' which would not be legal. 'I think given this opinion, [the CHRB could authorize it] if it is done right,' said I. Nelson Rose, a professor, attorney and author considered one of the world's leading experts on gambling and gambling law. 'One provision is you would have to have a race meet taking place and a few other technicalities. Politically, that's really going to be difficult because the tribes have such power in the Legislature. They've got huge power. 'The tracks just can't compete politically with the tribes,' he said.' But they do have enough political juice to keep the tribes from getting some things they may want.' The CHRB recently stirred the hornet's nest of adding Historical Horse Racing. In November, CHRB Chairman Greg Ferraro told the New York Times that he expected Historical Horse Racing machines to be in California race tracks in the near future. Nine months later, the only Historical Horse Racing machines that were rolled out were on the third floor grandstand at Santa Anita, but not usable by the public. The Times asked Butler about it at the time. He then ordered the machines to be shut off and put back in storage. 'The Northern California contraction has taken an inordinate amount of time and resources, but with that behind us some effort for purse supplements could start up again,' said Scott Chaney, executive director of the CHRB. 'The CHRB is very much in favor of a purse supplement and will aid in seeking that.' Chaney would not talk about Historical Horse Racing, only the need for supplementing purses. 'We would need a few more regulations in place,' he said. 'It's a lot more complicated than just putting machines in. There is a lot of regulation no one wants to talk about.' There could be another problem. Brackpool, who came to California after pleading guilty to criminal charges relating to securities trading in Britain, headed a group called Cadiz, which wanted to mine the water under the Mojave Desert and sell it to Los Angeles water interests. The leaders of the Chemehuevi tribe, or Nuwu, opposed the project because of the aquifer's potential connection to Bonanza Spring. The spring is part of the Nuwuvi Salt Song Trail, which is considered an ancient ceremonial loop in the desert. The Salt Songs are considered sacred and are used at many ceremonies to celebrate cultural revitalization and spiritual bond. Brackpool and his company were viewed as opposing the tribes. 'If the guy comes in with baggage and if they think they want an Indian fighter, then they will get an Indian fight,' Rocha said. 'Make that a failed Indian fighter. Bring him on. ... The tribes are undefeated for 25 years.' The Stronach Group and Del Mar also opposed the tribes during a meeting with Bonta in Sacramento late last year during which they asked the attorney general to oppose the tribes and get on board for Historical Horse Racing. It didn't happen. Bonta's office previously met with Kentucky operators to try to find out if there was a legal path for Historical Horse Racing machines. His office concluded that the machines were not legal under California law, according to a person with knowledge of the meetings not authorized to speak publicly about it because of the sensitivity of the matter. Others support Rocha's contention that horse racing needs more than Historical Horse Racing to survive. 'The problem is we don't have enough bettors, enough gambling dollars going into racing,' said Marshall Gramm, chair of the economics department at Rhodes College in Memphis, Tenn., where he teaches a class on the economics of gambling. He is also a horse owner and gambler. 'If the current economic model is that we need outside revenue, then it is unsustainable. [People could ask] if racing is supported [by state subsidies], why isn't that money going to the local mill that is closing. 'I'm very worried about The Stronach Group's commitment to racing overall,' he said. 'Is there going to be someone to fill their void if they leave the business? TSG is extremely unpredictable. Tomorrow they could do something great for racing or they could do nothing. 'I would love see racing in a position of surviving without external sources of revenue.' Racing could pull a last-minute rabbit out of its hat. But it has to start with conversations with those who can help the sport. The idea of negotiating with just one tribe is still on the table, although it would likely cause problems with the other tribes. 'Even if they make a deal with one tribe, it better be the right deal,' Rocha said. 'The tribes see it as the camel's nose under the tent. 'The way to get it done is through the [attorney general]. It's the state of California that decides,' he said. 'If it's illegal, the tribes will take it to court. It took pressure from the tribes to get Bonta to make his [latest] ruling. The tribes are very protective of their exclusivity.' Most people interviewed for this article said the outlook for adding Historical Horse Racing machines in California is grim. 'The race tracks' influence is declining, but they have 70 years of history with the state legislature,' said Rose, the gambling expert. '[The state] doesn't really care about the industries, but they do care about the taxes.'
Yahoo
13-06-2025
- Yahoo
Native American tribes pledge to ‘push hard' on casino plans near Boise
The Shoshone-Paiute Tribes have long wanted their own gaming operation. After all, they're the only tribe in Idaho without one. That dream is now a step closer to fruition. In the grassy plains halfway between Boise and Mountain Home, the Sho-Pai held a ceremony Thursday to bless the land where they plan to build their first resort and casino. The parcel straddles the Ada and Elmore county lines near Interstate 84 about two miles south of the exit for the Boise Stage Stop on Orchard Access Road. The site is part of the Sho-Pai's homelands, an area their ancestors were forcibly removed from over a century ago when Europeans colonized the West and corralled them into the remote Duck Valley Reservation on the Idaho-Nevada border. Life at Duck Valley is full of challenges, according to Brian Mason, chairman of the Sho-Pai Tribal Business Council. 'We still have some tribal members living in homes without floors or running water,' Mason said. 'We struggle with high unemployment, we don't have access to adequate medical care and we can't attract enough qualified teachers. Tribal gaming can give us the resources we need to solve these problems.' Under white canopy tents at the end of a long, dusty dirt road, hundreds gathered to commemorate the momentous occasion. Tribal leaders, wearing feathered headdresses and other cultural garb, led prayers, sang traditional songs and performed in drum circles. Cars and trucks traveling along the highway passed by quietly in the distant background. It was a homecoming of sorts. 'This is our ancestral land, our land that our people walked on before,' Mason said at the start of the ceremony. 'We're returning with a gaming operation.' It wouldn't be possible without the support of the Coeur d'Alene Tribe in northern Idaho. The tribe bought the more than 500-acre property in April to give to the Sho-Pai for the project. The Coeur d'Alene Tribe, whose council members traveled to southern Idaho for the blessing event, promised to share their expertise with the Sho-Pai to get the casino through permitting and development processes. Once the resort is up and running, the Coeur d'Alene Tribe plans to manage it, at least until the Sho-Pai learn the ropes. 'This is not a handout,' said Chief J. Allan, chairman of the Coeur d'Alene Tribal Council, during the ceremony. 'This is two nations working together. We're going to push hard. We've got to get it approved. We'll camp in D.C. if we have to.' Ysabel Bilbao, a spokesperson for the Sho-Pai, said the two tribal groups are working on submitting a fee-to-trust land acquisition application to the U.S. Department of Interior by late summer. 'We still have a road ahead of us, but it is a lot shorter,' Bilbao said. The Indian Gaming Regulatory Act requires that land used for gaming be held in trust, a process where the Interior Department acquires the title to the land and holds it for the benefit of the tribe. Loosened restrictions have allowed tribes to build casinos further afield from their reservations. The Sho-Pai don't have a casino on their reservation or elsewhere, but have been working on plans for a gaming project in the Mountain Home area since the 1990s. Their proposed resort and casino about 20 miles southeast of Boise is estimated to generate tens of millions of dollars a year for Idaho's economy and create thousands of well-paying jobs, according to the tribes. It would draw patrons from over 780,000 people who live in Ada and Canyon counties and nearly 30,000 who live in Elmore County. It would also attract travelers along the route between Boise and Mountain Home. The tribes envision the latest gaming machines, luxury hotel rooms, a spa, entertainment center and fine dining restaurants. The Sho-Pai pledge to give 5% of the casino's gaming revenues to local schools and education programs. 'It's going to give us a revenue stream so we can take care of our people back home,' Mason said. 'This is for our youth. They're our future leaders. And for our elders that are out there, we apologize for it taking so long.' Another casino? Even closer to Boise? Here is what's planned Want to buy a unique Idaho property? You could shoot your shot with a gun range Micron announces plans for a second memory-manufacturing plant in Boise
Yahoo
06-06-2025
- Politics
- Yahoo
Kansas attorney general: State can legally negotiate gaming compact with Wyandotte Nation
Attorneys representing Gov. Laura Kelly sought a legal opinion on potential of the Wyandotte Tribe entering into a state compact to offer casino gambling that included sports betting. Attorney General Kris Kobach says a Kansas governor is obligated to negotiate in good faith with on a tribal compact. In this image, Kelly speaks at 2024 dedication of a replica of the Ad Astra statue of a Native American pointing an arrow at the North Star. (Tim Carpenter/Kansas Reflector) TOPEKA — Attorney General Kris Kobach said Gov. Laura Kelly was obligated under federal law to negotiate in good faith with the Wyandotte Nation on a compact agreement to allow operation of casino gambling, including sports betting, on tribal land. Negotiations with the Wyandotte Nation wouldn't violate state law applicable to operation of four nontribal casinos in Kansas nor would negotiations be inconsistent with compacts with four tribes in the casino business in Kansas, the attorney general said. On Friday, Wyandotte Nation Chief Billy Friend said he appreciated the attorney general's opinion affirming the tribe's contention that state and federal statute wouldn't interfere with the tribe seeking a gaming compact in Kansas. 'We were pleased with the opinion,' he said. 'We're looking forward to sitting down and negotiating in good faith and coming up with a fair compact.' Kobach's nonbinding legal opinion said the federal Indian Gaming Regulatory Act, or IGRA, governed gaming on tribal land held by the Prairie Band Potawatomi, Sac & Fox, Kickapoo and Iowa tribes in Kansas. IGRA would likewise preempt state law related to a Wyandotte Nation request for a compact applicable to its 7th Street Casino in Wyandotte County and Cross Winds Casino near Park City in Sedgwick County, the opinion said. Under the Kansas Expanded Lottery Act, or KELA, the opinion said the state's jurisdiction over gambling activities was confined to four casinos outside of tribal land in Mulvane, Pittsburg, Dodge City and Kansas City, Kansas. These Kansas Lottery facilities operated through management contracts with private companies. KELA does forbid Kansas from adding state-owned casino zones through 2032. 'Because KELA and the management contracts do not prohibit efforts that further tribal gaming under IGRA, they do not prohibit negotiating with the Wyandotte Nation over a compact,' Kobach said. Kobach said sports wagering could be featured in a compact with the Wyandotte Nation because Kansas permitted that type of gaming at casinos across the state. In 2022, the Legislature and Kelly granted the four state-owned casinos an opportunity to operate sports books. Since 2023, the Iowa, Sac & Fox and Prairie Band Potawatomie nations negotiated sports betting agreements with the state. Friend, chief of the Wyandotte Nation headquartered in northeast Oklahoma, said the intent was to seek a compact with Kansas enabling the tribe to participate in sports gambling. Justin Whitten, chief counsel to the governor, sought the attorney general's insight into the intersection of IGRA and KELA. The request reflected government and industry concern about potential violation of state management contracts with nontribal casinos. 'A compact with the Wyandotte Nation would not fall under, and would not violate, KELA,' Kobach said. 'And, because federal law trumps state law, to the extent there is any conflict between IGRA and Kansas Statutes Annotated 46-2305, IGRA prevails.' Under the existing system of developing gaming compacts in Kansas, a tribe would begin by requesting negotiations with the governor. The negotiated compact documents would be submitted to the Legislature for consideration. If approved, the compact agreement would be forwarded for review to the U.S. Department of Interior. Kobach said the U.S. Supreme Court weakened IGRA's central mechanism for getting states to negotiate with tribes by holding IGRA didn't abrogate state sovereign immunity. 'This means that if the state does not negotiate with the Wyandotte Nation, or if the Wyandotte Nation believes the state is not negotiating in good faith, the state can invoke its sovereign immunity against any resulting suit by the tribe,' Kobach said. While a tribe might not successfully pursue a lawsuit against the state of Kansas, Kobach's opinion said, the federal government could take legal action on behalf of a tribe to sidestep a sovereign immunity defense.
Yahoo
25-04-2025
- Business
- Yahoo
Grand Forks casino proposal dies in House vote
Apr. 24—BISMARCK — A portion of a state Senate bill that included language to move forward a casino proposal in Grand Forks County failed in a Wednesday House vote, likely ending the plan for the conceivable future. Senate Bill 2018, an appropriations bill, included language that sought to allow the Turtle Mountain Band of Chippewa the ability to expand its casino operation beyond current tribal land. Existing state law mandates that the tribe cannot move outside of its traditional boundary. An earlier bill, SB 2376, specifically addressed the potential change but it failed in a 29-15 Senate vote in February. In March, the proposal was inserted into a Senate Bill 2018. At the time, state Rep. Emily O'Brien, R-Grand Forks, said she wanted it in SB 2018 because she considered it an "opportunity for the state to support local and tribal (economic development)." She said the state shouldn't stand in the way of what she considers local development decisions. The proposal was only to let the casino plan move forward, and was not the final say on whether it would be built. Various other approvals — and from various levels, ranging from city to federal — would have been needed prior to construction. On Wednesday, the House voted 66-26 against SB 2018's Division C, where the proposal was inserted. Prior to the vote, several members of the House debated the casino's merits, with O'Brien notably speaking in favor and others against. "For generations, tribal nations have fought for the right to self govern and build their own economies and to provide for the people with dignity and independence," she said. "Under the Indian Gaming Regulatory Act, tribal casinos are not just entertainment venues, but engines of opportunity. They fund schools, health care clinics, housing, addiction treatment and public safety on reservations, where those needs are urgent and under-resourced. "This is not a handout." But some felt the casino would open the possibility of tribes branching outward en masse while potentially having an adverse effect on the state's charitable gaming industry. Grand Forks Republican Rep. Nels Christianson said "compromise" and "balance" with gambling already exist in North Dakota. He believes that allowing expansion of American Indian gaming outside of a tribe's borders would jeopardize that balance. "A casino in Grand Forks County upsets that great consensus. Let us not have any misconceptions about this: A casino in Grand Forks will mean, eventually, a big casino adjacent to each large city in our state," he said. "This means money leaving our community and each tribe will feel the need to upstage the next for the best location adjacent to another North Dakota community." He added: "The proposed casino in Grand Forks County represents a giant monster sucking the lifeblood and earnings out of our community. I stand against this monster and I seek to slay it." Rep. Matthew Heilman, R-Bismarck, wondered aloud if allowing the proposal to move forward would be detrimental to the existing charitable gaming industry. "I'm not really sure," he said, answering his own question. "But I don't want to find out. ..." O'Brien specifically addressed charitable gaming during her short speech on the House floor. She said she supports the industry; meanwhile, she said, North Dakota charitable gaming has grown in recent years. "As of Dec. 31, 2024, there are five tribal casinos in North Dakota, compared to 328 licensed gaming entities, which includes 846 sites and 5,250 e-tab machines," she said. "These machines are easily accessible at our local restaurants, bars and fraternal clubs. And in 2022 alone, charitable gaming generated more than $1.7 billion — that's a 560% increase in just five years." At the same time, she said, tribal casinos are confined to traditional areas and thus are being "boxed out" as other gambling grows. "They are held to a stricter set of rules, bound by federal oversight and denied the ability to expand or relocate under state law. This is not equity and it's not balance," O'Brien said. "Both (industries) deserve our support." During his testimony, Rep. Mike Nathe, R-Bismarck, said he has received numerous emails from charitable organizations "that the sky is falling." "The more charitable gaming emails I get, the more I want to investigate these guys," he said. Rep. Lawrence Klemen, R-Bismarck, said the casino proposal reminds him of the failed Fufeng proposal. Announced in 2021and abandoned in 2023, the plan called for the China-backed company to build a corn mill on the edge of the city. It was abandoned when the Air Force declared the project a potential threat to national security. "Well, I think I've heard enough from the city of Grand Forks on this subject. I don't think we should be approving what they do in the name of economic development," he said. Later in the session, O'Brien rose to address "hurtful" comments. "Our discussion should focus on the merits of the issue at hand and not on questioning each other's motives," she said, reminding members about decorum. "... While I would accept an apology, the damage has been done and I expect more from this chamber." According to a report filed Thursday by Forum Communications columnist Rob Port , Klemen did email an apology to O'Brien and Rep. Jayme Davis, R-Rolette, who is a member of the Turtle Mountain Band of Chippewa.
Yahoo
25-03-2025
- Business
- Yahoo
United Auburn Indian Community files lawsuit over casino project
( —The United Auburn Indian Community announced they have filed a lawsuit against the U.S. Department of the Interior's approval of the Scotts Valley Band of Pomo Indians' casino project in Vallejo, California. Video Above: Sky River Casino announces expansion plans with hotel In the lawsuit, UAIC claims the approval violates the Indian Gaming Regulatory Act, the National Environmental Policy Act, the Indian Reorganization Act and the Administrative Procedure Act. UAIC also states that the approval of the casino project was, 'rushed and politically motivated, occurring just days before the end of the Biden Administration.' Uproar over national security lapse The lawsuit also said the Department violated federal policy by not consulting with impacted tribal governments. 'The approval of this casino is a blatant violation of federal law and sets a dangerous precedent for tribes that have followed the established rules for Indian gaming,' said John L. Williams, Chairman of the United Auburn Indian Community. 'For decades, our tribe has worked to uphold the integrity of the Indian Gaming Regulatory Act and prevent opportunistic gaming proposals that ignore history and harm responsible tribal governments.' According to UAIC, the proposed casino would be a massive, 615,000-square-foot development in a high-traffic corridor, on a sensitive habitat at the intersection of Highway 80 and Highway 37, near the gateway to the San Francisco Bay Area. They said the location is far from the tribe's aboriginal homeland. Some of their concerns include: Encroachment upon the ancestral lands of other tribes The environmental impact Increased congestion The protection of tribal cultural resources The precedent of placing casinos in densely populated urban areas under questionable legal authority. UAIC highlights the history of the Scotts Valley Band of Pomo Indians attempting to implement off-reservation casinos, claiming they attempted it in 1991, 2012 and 2019. The Scotts Valley Band of Pomo Indians the U.S. Department of the Interior have not made a statement regarding the lawsuit. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
