The operators of Santa Anita Park and Golden Gate Fields have filed a lawsuit against a horse racing website with alleged ties to an offshore racebook operation, charging the website with facilitating illegal online betting on California races and from California residents.
The Los Angeles Turf Club, licensed by the California Horse Racing Board to run race meetings at Santa Anita in Arcadia, and the Pacific Racing Association, which operates Golden Gate Fields in Albany, filed the suit against US Racing (www.usracing.com) and BUSR (www.busr.ag). One challenge, according to the complaint, is that both US Racing and BUSR are entities “of an unknown form…plaintiff does not know the true names” of the owners of the two websites.
Both LATC and PRA are part of the 1/ST Racing, owned by The Stronach Group.
The suit was filed Oct. 20 in the U.S. District Court for the Central District of California, Western Division.
The complaint claims that the two entities are in violation of the Interstate Horseracing Act and the Racketeer Influenced and Corrupt Organizations Act (RICO). It alleges that US Racing and BUSR “actively promote and market illegal online betting on horse races,” with US Racing directly referring individuals to the BUSR website through hyperlinks placed throughout the site. Neither entity is licensed through the California Horse Racing Board or authorized by the regulatory agency to accept wagers on California races or from California residents. Neither has statutory agreements with tracks or horsemen's groups to accept wagers on their races, and by operating offshore there are no host/signal fees or takeout mandated by California law. Wagers do not enter the pari-mutuel system.
“Defendants failure to pay the statutorily mandated takeout deductions as well as host fees and/or commissions increases Defendants net revenue thereby allowing them to offer rebates and other financial incentives to individuals…who place illegal bets through Defendants' websites in order to gain an unfair competitive advantage over Plaintiffs and over the licensed ADW providers operating in California,” the complaint states.
The Plaintiffs are seeking a permanent injunction barring defendants from accepting wagers on California races or from California residents, treble damages and attorneys fees.
A lawsuit only tells one side of the story. The Defendants in the suit will be afforded an opportunity to respond.
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