Report: Calif. executives consider historical horse racing

A group of racing executives is working to come up with a plan to support purses at tracks in California with historical horse racing machines.

John Cherwa of the Los Angeles Times reported Monday that those involved are Aidan Butler, CEO of 1/ST Racing, which owns Santa Anita; Josh Rubinstein, chief operating officer at Del Mar; Bill Nader, chief executive of the Thoroughbred Owners of California; and Keith Brackpool, a former chairman of the California Horse Racing Board and executive with The Stronach Group, who is working as a consultant.

Nader told Horse Racing Nation that although he couldn't comment on the nature or progress of the effort, "it's priority no. 1, from our point of view, that ancillary revenue to help provide a better value proposition for horse owners and breeders in the state of California is something that is incredibly important to the future of racing in the state."

The options for making HHR happen include negotiating with the tribes to split income from the machines that would be operated at the tracks. Cherwa wrote that this would be the most seamless option but requires cooperation with the tribes.

Or tracks could install machines with the expectation that the tribes likely would sue, and they could make money while the matter is resolved through the courts.

Another option is to seek to have state law changed to allow HHR machines at racetracks. The tribes likely would oppose such a measure, but there could be room for negotiation, Cherwa wrote. HHR would not seriously cut into the tribes’ gaming business, and the tribes might go along with it if they can gain approval for internet gambling.

Or tracks could negotiate with a single tribe, rather than the consortium of tribal nations. Individual tribes are not allowed to negotiate on their own, and this could set up infighting that could strengthen the tracks’ position, according to the report.

It’s not clear when any action might be taken to have HHR gaming in California. But as Cherwa noted, CHRB chairman Greg Ferraro told The New York Times in November that he expected an HHR proposal “soon” and that the board was likely to approve it.