(1)The Horse Racing Law prohibits a satellite wagering facility, except a facility that is located at a track where live racing is conducted, from being located within 20 miles of any existing satellite wagering facility or of any track where a racing association conducts a live racing meeting, except, in the northern zone, the racing association or existing satellite wagering facility is authorized to waive this prohibition and consent to locating the new satellite wagering facility within 20 miles of the facility or track.

This bill would expand that exception to the entire state.

(2)The Horse Racing Law requires, before a satellite wagering facility may be licensed for the 1997 and subsequent calendar years, the department to conduct a one-year test at the proposed site in order to determine the impact of the proposed facility on total state parimutuel revenues and on attendance and wagering at existing racetracks and fair satellite wagering facilities in the Counties of Alameda, San Mateo, Santa Clara, and Solano.

This bill would delete that requirement.

(3)The Horse Racing Law authorizes fairs to contract for the operation and management of a satellite wagering facility with an individual racing association or a partnership, joint venture, or other affiliation of 2 or more racing associations or fairs that are licensed to conduct thoroughbred meetings or simulcast wagering within the northern zone.

This bill would expand that authorization for fairs to contract, as specified above, for thoroughbred meetings or simulcast wagering within the state.

(1)The Horse Racing Law prohibits a satellite wagering facility, except a facility that is located at a track where live racing is conducted, from being located within 20 miles of any existing satellite wagering facility or of any track where a racing association conducts a live racing meeting, except, in the northern zone, the racing association or existing satellite wagering facility is authorized to waive this prohibition and consent to locating the new satellite wagering facility within 20 miles of the facility or track.

This bill would expand that exception to the entire state.

(2)The Horse Racing Law authorizes the Department of Food and Agriculture to approve not more than 3 satellite wagering facilities that are licensed jointly to the 1a District Agricultural Association and the 5th District Agricultural Association and that are located on the fairgrounds of the 1a District Agricultural Association or within the boundaries of the City and County of San Francisco.

This bill would limit the department to approval of not more than 2 satellite wagering facilities, as described above.

(3)The Horse Racing Law requires, before a satellite wagering facility may be licensed for the 1997 and subsequent calendar years, the department to conduct a one-year test at the proposed site in order to determine the impact of the proposed facility on total state parimutuel revenues and on attendance and wagering at existing racetracks and fair satellite wagering facilities in the Counties of Alameda, San Mateo, Santa Clara, and Solano.

This bill would delete that requirement.

(4)The Horse Racing Law authorizes fairs to contract for the operation and management of a satellite wagering facility with an individual racing association or a partnership, joint venture, or other affiliation of 2 or more racing associations or fairs that are licensed to conduct thoroughbred meetings or simulcast wagering within the northern zone.

This bill would expand that authorization for fairs to contract, as specified above, for thoroughbred meetings or simulcast wagering within the state.

 THIRD READING 

Bill No: AB 2536

Author: Blanca Rubio (D)

Amended: 3/27/26 in Assembly

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 14-0, 6/23/26

AYES: Rubio, Valladares, Archuleta, Ashby, Blakespear, Cervantes, Dahle, Hurtado, Ochoa Bogh, Padilla, Richardson, Smallwood-Cuevas, Wahab, Weber Pierson

NO VOTE RECORDED: Alvarado-Gil

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 73-0, 5/4/26 (Consent) - See last page for vote

SUBJECT: Horse racing: satellite wagering facilities: authorizations

SOURCE: Author

DIGEST:

This bill makes various minor revisions to existing Horse Racing Law governing the authorization of satellite wagering facilities in the state, as specified.

ANALYSIS:

Existing law:

1. Prohibits, pursuant to the Horse Racing Law, a satellite wagering facility, except a facility that is located at a track where live racing is conducted, from being located within 20 miles of any existing satellite wagering facility or of any track where a racing association conducts a live racing meeting, except, in the northern zone, the racing association or existing satellite wagering facility is authorized to waive this prohibition and consent to locating the new satellite wagering facility within 20 miles of the facility of the track.
2. Requires, before a satellite wagering facility may be licensed for the 1997 and subsequent calendar years, the Department of Food and Agriculture (CDFA) to conduct a one-year test at the proposed site in order to determine the impact of the proposed facility on total state parimutuel revenues and on attendance and wagering at existing racetracks and fair satellite wagering facilities in the Counties of Alameda, San Mateo, Santa Clara, and Solano.
3. Authorizes fairs to contract for the operation and management of a satellite wagering facility with an individual racing association or a partnership, joint venture, or other affiliation of two or more racing associations or fairs that are licensed to conduct thoroughbred meetings or simulcast wagering within the northern zone.

This bill:

1. Expands the above-mentioned 20-mile exemption to include the entire state.
2. Deletes the requirement that the CDFA conduct a one-year test as described above.
3. Expands the above-mentioned authorization for fairs to contract for thoroughbred meetings or simulcast wagering within the state, as specified.

Background

Author Statement. According to the author’s office, “this bill is intended to provide technical and clarifying changes to the Horse Racing Law following the cessation of live horse racing in Northern California in December 2024. This update is necessary because current authorizations for satellite wagering and related distributions are tied to geographic racing zones (Northern, Central, and Southern). The bill would extend an existing satellite wagering authorization, contingent upon consent from entities involved in statewide live racing operations. It would not expand current law; rather, it ensures that an existing authorization remains available should the industry choose to utilize it.”

Horse Racing in California. The horse racing industry in California is grappling with a multifaceted crisis that threatens its long-term viability. Over the past three to four decades, California’s horse racing industry has seen a significant decline in attendance, purses, and betting handle—a trend that mirrors shifts in consumer habits and growing competition from alternative forms of entertainment and gambling. In its heyday, iconic tracks like Santa Anita, Del Mar, and Hollywood Park attracted tens of thousands of spectators on race days, creating a vibrant atmosphere that drove robust on-track wagering. As simulcasting emerged in the 1980s and online betting platforms took off in the early 2000s, fans increasingly chose to place their bets from home or at local simulcast facilities rather than visiting the tracks, causing live attendance to plummet.

In 2023, it was announced that the Golden Gate Fields racing track on the eastern shore of the San Francisco Bay would be closing permanently at the end of their 2024 meet. In early 2025, the California Authority of Racing Fairs (CARF) announced that it would abandon plans to organize horse racing in Northern California throughout several county fairs. At the time of last summer’s racing meet, there were roughly 900 horses stalled in Pleasanton at the Alameda County fairgrounds, however with the closure of Golden Gate Fields and increasing financial distress, there were somewhere between 450 and 500 at the time of CARF’s announcement.

The Alameda County Fair Board voted in January of this year to shut down their racing operations, citing an outdated water drainage system and an inability to sustain so many horses. Again, the larger issue continues to be the increasing unprofitability of the industry. According to a recent article by NBC Bay Area News titled “Race horses forced out of Alameda County Fairgrounds leaving owners, trainers scrambling,” Alameda County Fairgrounds CEO Jerome Hoban said, “[i]t’s no secret that horse racing has been economically moving in the wrong direction for a long time,” and that “[t]he Alameda County Fair has lost over $2 million in just the fall race meet.” This effectively ended the long-standing northern zone regional circuit.

Satellite Wagering. Satellite wagering via an off-track facility has been legal in California since the 1980s when California racetracks began experiencing declining attendance and handle figures. The industry believed that making the product easier to access not only would expose and market horse racing to potential customers but also make it more convenient for the existing patrons to wager more frequently. However, while off-track-betting and simulcasting can open new revenue pathways, they may cannibalize traditional on-track income, putting tracks at further financial risk and potentially contributing to closures.

Simulcasting. Simulcasting is the process of transmitting the audio and video signal of a live racing performance from one facility to a satellite for re-transmission to other locations or venues where pari-mutuel wagering is permitted. Simulcasting provides racetracks with the opportunity to increase revenues by exporting their live racing content to as many wagering locations as possible, such as other racetracks, fair satellite facilities, and Indian casinos. Revenues increase because simulcasting provides racetracks that export their live content with additional customers in multiple locations who would not have otherwise been able to place wagers on the live racing event.

Thoroughbred racing associations and fairs in California can distribute the audiovisual signal and accept wagers on the results of out-of-state thoroughbred races during their own race meetings. This is allowed even on days when no live races are being held at their venues. There is a limit on the number of out-of-state races that can be imported into California for betting purposes. On days when there is live thoroughbred or fair racing happening in California, the total number of races imported from out-of-state must not exceed 75 races-per-day.

However, there are exceptions to this limit. Races that are part of specific major events like the Kentucky Derby, Breeders’ Cup, and other specified races can be imported without falling under the 75 race-per-day limit. Additional exceptions are made for importing races into certain geographical zones of California when no local live racing is occurring. Any wagering on these out-of-state races must comply with specific provisions of California’s Horse Racing Law that govern how betting should be conducted. Wagers on out-of-state races are not allowed after 7 p.m. Pacific Standard Time unless there is consent from the local harness or quarter horse racing associations conducting live racing in either Sacramento or Orange County.

Advance Deposit Wagering. The California horse racing industry entered into a new era in 2002 with the advent of Advance Deposit Wagering (ADW) which allows customers to deposit funds into an account in order to wager online and/or over the phone. These wagers are commingled into pools at the host track where the races are run, and within the pari-mutuel wagering system regulated by California Horse Racing Board (CHRB). Currently, eight ADW providers are operating in the state under a CHRB license. During the 2023-2024 fiscal year (FY), off-track betting within the state provided 13% of the total handle. The balance of the handle comes from out-of-state and ADW wagers – ADW accounted for about 45% or $1.34 billion. ADW remains the only legal form of online wagering in California.

Pari-mutuel Wagering. Horse racing has been active in California since the 1800s, but horse racing as we now know it – under the pari-mutuel wagering system – was not made possible until the electorate passed a constitutional amendment in 1933. The expressed intent of California’s Horse Racing Law is to allow pari-mutuel wagering on horse races. Pari-mutuel, from the French term for mutual betting, is a betting system in which all bets of a particular type are placed together in a pool, and payoff odds are calculated by sharing the pool among all winning bets. Pari-mutuel betting differs from fixed-odds betting in that the final payout is not determined until the pool is closed – in fixed-odds betting, the payout is agreed at the time the bet is sold.

Related/Prior Legislation

SB 1294 (Rubio, 2026) adds the Japan Cup to the existing group of thoroughbred horse race meetings that are exempt from the 75 race-per-day limit on imported races into California for the purposes of wagering. (Pending on the Assembly Inactive File)

AB 2792 (Committee on Governmental Organization, 2026) adds the New York Stakes to the existing group of thoroughbred horse race meetings that are exempt from the 75 race-per-day limit on imported races into California for the purposes of wagering. (Pending on the Seante Floor)

SB 844 (S. Rubio, 2025) increases the current cap on the importation of out-of-state thoroughbred races by a thoroughbred association or fair, on days when live thoroughbred or fair racing is being conducted in the state from 75 to 80 races-per-day. (Never Heard in the Assembly Governmental Organization Committee)

AB 1526 (Committee on Governmental Organization, 2025) makes various technical and non-substantive changes to provisions of the Horse Racing Law, as specified. (Pending on the Senate Floor)

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 8/3/26)

None received

OPPOSITION: (Verified 8/3/26)

None received

ASSEMBLY FLOOR: 73-0, 5/4/26

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Berman, Boerner, Bonta, Bryan, Calderon, Carrillo, Castillo, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Ward, Wicks, Zbur, Rivas

NO VOTE RECORDED: Arambula, Bennett, Caloza, Chen, Flora, Wallis, Wilson

Prepared by: Brian Duke / G.O. / (916) 651-1530

8/6/26 11:34:13

**** END ****

 CONSENT  

Bill No: AB 2536

Author: Blanca Rubio (D)

Amended: 3/27/26 in Assembly

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 14-0, 6/23/26

AYES: Rubio, Valladares, Archuleta, Ashby, Blakespear, Cervantes, Dahle, Hurtado, Ochoa Bogh, Padilla, Richardson, Smallwood-Cuevas, Wahab, Weber Pierson

NO VOTE RECORDED: Alvarado-Gil

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 73-0, 5/4/26 (Consent) - See last page for vote

SUBJECT: Horse racing: satellite wagering facilities: authorizations

SOURCE: Author

DIGEST:

This bill makes various minor revisions to existing Horse Racing Law governing the authorization of satellite wagering facilities in the state, as specified.

ANALYSIS:

Existing law:

1. Prohibits, pursuant to the Horse Racing Law, a satellite wagering facility, except a facility that is located at a track where live racing is conducted, from being located within 20 miles of any existing satellite wagering facility or of any track where a racing association conducts a live racing meeting, except, in the northern zone, the racing association or existing satellite wagering facility is authorized to waive this prohibition and consent to locating the new satellite wagering facility within 20 miles of the facility of the track.
2. Requires, before a satellite wagering facility may be licensed for the 1997 and subsequent calendar years, the Department of Food and Agriculture (CDFA) to conduct a one-year test at the proposed site in order to determine the impact of the proposed facility on total state parimutuel revenues and on attendance and wagering at existing racetracks and fair satellite wagering facilities in the Counties of Alameda, San Mateo, Santa Clara, and Solano.
3. Authorizes fairs to contract for the operation and management of a satellite wagering facility with an individual racing association or a partnership, joint venture, or other affiliation of two or more racing associations or fairs that are licensed to conduct thoroughbred meetings or simulcast wagering within the northern zone.

This bill:

1. Expands the above-mentioned 20-mile exemption to include the entire state.
2. Deletes the requirement that the CDFA conduct a one-year test as described above.
3. Expands the above-mentioned authorization for fairs to contract for thoroughbred meetings or simulcast wagering within the state, as specified.

Background

Author Statement. According to the author’s office, “this bill is intended to provide technical and clarifying changes to the Horse Racing Law following the cessation of live horse racing in Northern California in December 2024. This update is necessary because current authorizations for satellite wagering and related distributions are tied to geographic racing zones (Northern, Central, and Southern). The bill would extend an existing satellite wagering authorization, contingent upon consent from entities involved in statewide live racing operations. It would not expand current law; rather, it ensures that an existing authorization remains available should the industry choose to utilize it.”

Horse Racing in California. The horse racing industry in California is grappling with a multifaceted crisis that threatens its long-term viability. Over the past three to four decades, California’s horse racing industry has seen a significant decline in attendance, purses, and betting handle—a trend that mirrors shifts in consumer habits and growing competition from alternative forms of entertainment and gambling. In its heyday, iconic tracks like Santa Anita, Del Mar, and Hollywood Park attracted tens of thousands of spectators on race days, creating a vibrant atmosphere that drove robust on-track wagering. As simulcasting emerged in the 1980s and online betting platforms took off in the early 2000s, fans increasingly chose to place their bets from home or at local simulcast facilities rather than visiting the tracks, causing live attendance to plummet.

In 2023, it was announced that the Golden Gate Fields racing track on the eastern shore of the San Francisco Bay would be closing permanently at the end of their 2024 meet. In early 2025, the California Authority of Racing Fairs (CARF) announced that it would abandon plans to organize horse racing in Northern California throughout several county fairs. At the time of last summer’s racing meet, there were roughly 900 horses stalled in Pleasanton at the Alameda County fairgrounds, however with the closure of Golden Gate Fields and increasing financial distress, there were somewhere between 450 and 500 at the time of CARF’s announcement.

The Alameda County Fair Board voted in January of this year to shut down their racing operations, citing an outdated water drainage system and an inability to sustain so many horses. Again, the larger issue continues to be the increasing unprofitability of the industry. According to a recent article by NBC Bay Area News titled “Race horses forced out of Alameda County Fairgrounds leaving owners, trainers scrambling,” Alameda County Fairgrounds CEO Jerome Hoban said, “[i]t’s no secret that horse racing has been economically moving in the wrong direction for a long time,” and that “[t]he Alameda County Fair has lost over $2 million in just the fall race meet.” This effectively ended the long-standing northern zone regional circuit.

Satellite Wagering. Satellite wagering via an off-track facility has been legal in California since the 1980s when California racetracks began experiencing declining attendance and handle figures. The industry believed that making the product easier to access not only would expose and market horse racing to potential customers but also make it more convenient for the existing patrons to wager more frequently. However, while off-track-betting and simulcasting can open new revenue pathways, they may cannibalize traditional on-track income, putting tracks at further financial risk and potentially contributing to closures.

Simulcasting. Simulcasting is the process of transmitting the audio and video signal of a live racing performance from one facility to a satellite for re-transmission to other locations or venues where pari-mutuel wagering is permitted. Simulcasting provides racetracks with the opportunity to increase revenues by exporting their live racing content to as many wagering locations as possible, such as other racetracks, fair satellite facilities, and Indian casinos. Revenues increase because simulcasting provides racetracks that export their live content with additional customers in multiple locations who would not have otherwise been able to place wagers on the live racing event.

Thoroughbred racing associations and fairs in California can distribute the audiovisual signal and accept wagers on the results of out-of-state thoroughbred races during their own race meetings. This is allowed even on days when no live races are being held at their venues. There is a limit on the number of out-of-state races that can be imported into California for betting purposes. On days when there is live thoroughbred or fair racing happening in California, the total number of races imported from out-of-state must not exceed 75 races-per-day.

However, there are exceptions to this limit. Races that are part of specific major events like the Kentucky Derby, Breeders’ Cup, and other specified races can be imported without falling under the 75 race-per-day limit. Additional exceptions are made for importing races into certain geographical zones of California when no local live racing is occurring. Any wagering on these out-of-state races must comply with specific provisions of California’s Horse Racing Law that govern how betting should be conducted. Wagers on out-of-state races are not allowed after 7 p.m. Pacific Standard Time unless there is consent from the local harness or quarter horse racing associations conducting live racing in either Sacramento or Orange County.

Advance Deposit Wagering. The California horse racing industry entered into a new era in 2002 with the advent of Advance Deposit Wagering (ADW) which allows customers to deposit funds into an account in order to wager online and/or over the phone. These wagers are commingled into pools at the host track where the races are run, and within the pari-mutuel wagering system regulated by California Horse Racing Board (CHRB). Currently, eight ADW providers are operating in the state under a CHRB license. During the 2023-2024 fiscal year (FY), off-track betting within the state provided 13% of the total handle. The balance of the handle comes from out-of-state and ADW wagers – ADW accounted for about 45% or $1.34 billion. ADW remains the only legal form of online wagering in California.

Pari-mutuel Wagering. Horse racing has been active in California since the 1800s, but horse racing as we now know it – under the pari-mutuel wagering system – was not made possible until the electorate passed a constitutional amendment in 1933. The expressed intent of California’s Horse Racing Law is to allow pari-mutuel wagering on horse races. Pari-mutuel, from the French term for mutual betting, is a betting system in which all bets of a particular type are placed together in a pool, and payoff odds are calculated by sharing the pool among all winning bets. Pari-mutuel betting differs from fixed-odds betting in that the final payout is not determined until the pool is closed – in fixed-odds betting, the payout is agreed at the time the bet is sold.

Related/Prior Legislation

SB 1294 (Rubio, 2026) adds the Japan Cup to the existing group of thoroughbred horse race meetings that are exempt from the 75 race-per-day limit on imported races into California for the purposes of wagering. (Pending on the Assembly Inactive File)

AB 2792 (Committee on Governmental Organization, 2026) adds the New York Stakes to the existing group of thoroughbred horse race meetings that are exempt from the 75 race-per-day limit on imported races into California for the purposes of wagering. (Pending on the Seante Floor)

SB 844 (S. Rubio, 2025) increases the current cap on the importation of out-of-state thoroughbred races by a thoroughbred association or fair, on days when live thoroughbred or fair racing is being conducted in the state from 75 to 80 races-per-day. (Never Heard in the Assembly Governmental Organization Committee)

AB 1526 (Committee on Governmental Organization, 2025) makes various technical and non-substantive changes to provisions of the Horse Racing Law, as specified. (Pending on the Senate Floor)

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 8/3/26)

None received

OPPOSITION: (Verified 8/3/26)

None received

ASSEMBLY FLOOR: 73-0, 5/4/26

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Berman, Boerner, Bonta, Bryan, Calderon, Carrillo, Castillo, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Ward, Wicks, Zbur, Rivas

NO VOTE RECORDED: Arambula, Bennett, Caloza, Chen, Flora, Wallis, Wilson

Prepared by: Brian Duke / G.O. / (916) 651-1530

8/5/26 15:12:48

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Susan Rubio

Chair

2025 - 2026 Regular

Bill No: Hearing Date: 6/23/2026

SUBJECT:

DIGEST: This bill makes various revisions to existing Horse Racing Law governing current authorizations for satellite wagering facilities in the state, as specified.

ANALYSIS:

Existing law:

1. Prohibits, pursuant to the Horse Racing Law, a satellite wagering facility, except a facility that is located at a track where live racing is conducted, from being located within 20 miles of any existing satellite wagering facility or of any track where a racing association conducts a live racing meeting, except, in the northern zone, the racing association or existing satellite wagering facility is authorized to waive this prohibition and consent to locating the new satellite wagering facility within 20 miles of the facility of the track.
2. Requires, before a satellite wagering facility may be licensed for the 1997 and subsequent calendar years, the Department of Food and Agriculture (CDFA) to conduct a one-year test at the proposed site in order to determine the impact of the proposed facility on total state parimutuel revenues and on attendance and wagering at existing racetracks and fair satellite wagering facilities in the Counties of Alameda, San Mateo, Santa Clara, and Solano.
3. Authorizes fairs to contract for the operation and management of a satellite wagering facility with an individual racing association or a partnership, joint venture, or other affiliation of two or more racing associations or fairs that are licensed to conduct thoroughbred meetings or simulcast wagering within the northern zone.

This bill:

1. Expands the above-mentioned 20-mile exemption to include the entire state.
2. Deletes the requirement that the CDFA conduct a one-year test as described above.
3. Expands the above-mentioned authorization for fairs to contract for thoroughbred meetings or simulcast wagering within the state, as specified.

Background

Author Statement. According to the author’s office, “this bill is intended to provide technical and clarifying changes to the Horse Racing Law following the cessation of live horse racing in Northern California in December 2024. This update is necessary because current authorizations for satellite wagering and related distributions are tied to geographic racing zones (Northern, Central, and Southern). The bill would extend an existing satellite wagering authorization, contingent upon consent from entities involved in statewide live racing operations. It would not expand current law; rather, it ensures that an existing authorization remains available should the industry choose to utilize it.”

Horse Racing in California. The horse racing industry in California is grappling with a multifaceted crisis that threatens its long-term viability. Over the past three to four decades, California’s horse racing industry has seen a significant decline in attendance, purses, and betting handle—a trend that mirrors shifts in consumer habits and growing competition from alternative forms of entertainment and gambling. In its heyday, iconic tracks like Santa Anita, Del Mar, and Hollywood Park attracted tens of thousands of spectators on race days, creating a vibrant atmosphere that drove robust on-track wagering. As simulcasting emerged in the 1980s and online betting platforms took off in the early 2000s, fans increasingly chose to place their bets from home or at local simulcast facilities rather than visiting the tracks, causing live attendance to plummet.

In 2023, it was announced that the Golden Gate Fields racing track on the eastern shore of the San Francisco Bay would be closing permanently at the end of their 2024 meet. In early 2025, the California Authority of Racing Fairs (CARF) announced that it would abandon plans to organize horse racing in Northern California throughout several county fairs. At the time of last summer’s racing meet, there were roughly 900 horses stalled in Pleasanton at the Alameda County fairgrounds, however with the closure of Golden Gate Fields and increasing financial distress, there were somewhere between 450 and 500 at the time of CARF’s announcement.

The Alameda County Fair Board voted in January of this year to shut down their racing operations, citing an outdated water drainage system and an inability to sustain so many horses. Again, the larger issue continues to be the increasing unprofitability of the industry. According to a recent article by NBC Bay Area News titled “Race horses forced out of Alameda County Fairgrounds leaving owners, trainers scrambling,” Alameda County Fairgrounds CEO Jerome Hoban said, “[i]t’s no secret that horse racing has been economically moving in the wrong direction for a long time,” and that “[t]he Alameda County Fair has lost over $2 million in just the fall race meet.” This effectively ended the long-standing northern zone regional circuit.

Satellite Wagering. Satellite wagering via an off-track facility has been legal in California since the 1980s when California racetracks began experiencing declining attendance and handle figures. The industry believed that making the product easier to access not only would expose and market horse racing to potential customers but also make it more convenient for the existing patrons to wager more frequently. However, while off-track-betting and simulcasting can open new revenue pathways, they may cannibalize traditional on-track income, putting tracks at further financial risk and potentially contributing to closures.

Simulcasting. Simulcasting is the process of transmitting the audio and video signal of a live racing performance from one facility to a satellite for re-transmission to other locations or venues where pari-mutuel wagering is permitted. Simulcasting provides racetracks with the opportunity to increase revenues by exporting their live racing content to as many wagering locations as possible, such as other racetracks, fair satellite facilities, and Indian casinos. Revenues increase because simulcasting provides racetracks that export their live content with additional customers in multiple locations who would not have otherwise been able to place wagers on the live racing event.

Thoroughbred racing associations and fairs in California can distribute the audiovisual signal and accept wagers on the results of out-of-state thoroughbred races during their own race meetings. This is allowed even on days when no live races are being held at their venues. There is a limit on the number of out-of-state races that can be imported into California for betting purposes. On days when there is live thoroughbred or fair racing happening in California, the total number of races imported from out-of-state must not exceed 75 races-per-day.

However, there are exceptions to this limit. Races that are part of specific major events like the Kentucky Derby, Breeders’ Cup, and other specified races can be imported without falling under the 75 race-per-day limit. Additional exceptions are made for importing races into certain geographical zones of California when no local live racing is occurring. Any wagering on these out-of-state races must comply with specific provisions of California’s Horse Racing Law that govern how betting should be conducted. Wagers on out-of-state races are not allowed after 7 p.m. Pacific Standard Time unless there is consent from the local harness or quarter horse racing associations conducting live racing in either Sacramento or Orange County.

Advance Deposit Wagering. The California horse racing industry entered into a new era in 2002 with the advent of Advance Deposit Wagering (ADW) which allows customers to deposit funds into an account in order to wager online and/or over the phone. These wagers are commingled into pools at the host track where the races are run, and within the pari-mutuel wagering system regulated by CHRB. Currently, eight ADW providers are operating in the state under a CHRB license. During the 2023-2024 fiscal year (FY), off-track betting within the state provided 13 percent of the total handle. The balance of the handle comes from out-of-state and ADW wagers – ADW accounted for about 45 percent or $1.34 billion. ADW remains the only legal form of online wagering in California.

Pari-mutuel Wagering. Horse racing has been active in California since the 1800s, but horse racing as we now know it – under the pari-mutuel wagering system – was not made possible until the electorate passed a constitutional amendment in 1933. The expressed intent of California’s Horse Racing Law is to allow pari-mutuel wagering on horse races. Pari-mutuel, from the French term for mutual betting, is a betting system in which all bets of a particular type are placed together in a pool, and payoff odds are calculated by sharing the pool among all winning bets. Pari-mutuel betting differs from fixed-odds betting in that the final payout is not determined until the pool is closed – in fixed-odds betting, the payout is agreed at the time the bet is sold.

Prior/Related Legislation

SB 1294 (Rubio, 2026) adds the Japan Cup to the existing group of thoroughbred horse race meetings that are exempt from the 75 race-per-day limit on imported races into California for the purposes of wagering. (Pending in the Assembly Governmental Organization Committee)

AB 2792 (Committee on Governmental Organization, 2026) adds the New York Stakes to the existing group of thoroughbred horse race meetings that are exempt from the 75 race-per-day limit on imported races into California for the purposes of wagering. (Pending in the Senate Governmental Organization Committee)

SB 844 (S. Rubio, 2025) increases the current cap on the importation of out-of-state thoroughbred races by a thoroughbred association or fair, on days when live thoroughbred or fair racing is being conducted in the state from 75 to 80 races-per-day. (Pending in the Assembly Governmental Organization Committee)

AB 1526 (Committee on Governmental Organization, 2025) makes various technical and non-substantive changes to provisions of the Horse Racing Law, as specified. (Pending on the Senate Floor)

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

None received

OPPOSITION:

None received

Date of Hearing: April 22, 2026

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 2536

Author:(Blanca Rubio) – As Amended Ver:March 27, 2026

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill modifies Horse Racing Law (HRL) to strike references to the “northern zone” and facilitate the licensure of additional simulcast wagering operators.

Specifically, this bill:

1. Strikes the limitation of certain HRL provisions (regarding the location of a new satellite wagering facility within 20 miles of an existing facility or racing track and the authorization for certain fairs to contract with another entity to operate a facility) to the northern zone only, thus expanding the applicability of the provisions to the entire state.
2. Repeals the requirement that the California Horse Racing Board (CHRB) conduct a one-year test at the proposed site of a new satellite wagering facility licensed to certain agricultural associations to determine the impact of the proposed facility on existing facilities and racing tracks before licensing the new facility.

FISCAL EFFECT:

1. Likely minor and absorbable costs to CHRB. Although this bill makes it possible to license additional simulcast wagering facilities, CHRB notes that there is little demand to open a new facility and does not expect an increase in facility applications.
2. To the extent this bill results in the licensure of an additional satellite wagering facility, potential minor revenue increase to fund CHRB and the Kenneth L. Maddy Equine Analytical Chemistry Laboratory at the University of California, Davis, due to increased wagering opportunities.

COMMENTS:

1. Purpose. According to the author, this bill is necessary following the December 2024 cessation of live horse racing in Northern California, as current authorizations for satellite wagering and related distributions are tied to geographic racing zones. The author notes this bill extends an existing satellite wagering authorization, contingent upon consent from entities involved in statewide live racing operations.
2. Background. Satellite Wagering Facilities. Under the HRL, simulcasting is the process of transmitting via satellite the audio and video signal of a live horse racing performance from one facility to a satellite wagering facility where wagering is permitted. Thus, simulcasting provides the opportunity for a horse racing track to increase revenues by exporting live race content to other racing tracks, fairs, and tribal casinos, which is especially important in light of the industry’s ongoing decline in attendance and handle figures.

Horse Racing Zones. California horse racing is generally split between two zones – the northern zone and the southern zone (although there is a central zone, the central and southern zones are grouped into one zone for purposes of wagering). Money wagered on a California horse race, whether placed in-person or online, stays in the zone where the money is wagered. For example, money from a wager placed in the northern zone stays in the northern zone, regardless of whether the customer is wagering on a race held at the northern zone track, a southern zone track holding a concurrent race, or an out-of-state track.

The closure of Golden Gate Fields in 2024 led to a significant gap in the northern zone racing calendar and the logistics of collecting and distributing funds wagered in the northern zone. AB 1074 (Alanis), Chapter 275, Statutes of 2023, addressed this gap by requiring a racing association in the southern zone, if at a time when there is no live racing occurring in the northern zone, to be deemed operating in the northern zone for the purposes of conducting wagering and making and receiving required distributions from wagers in accordance with existing law. This bill strikes references to the northern zone regarding the authorization and operation of certain satellite wagering facilities, thus making the provisions effective in relation to the entire state, and makes other changes to facilitate the licensure of additional satellite wagering facilities.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: April 8, 2026

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Blanca Rubio, Chair

ABPCA Bill Id:AB 2536 (

Author:Blanca Rubio) – As Amended Ver:April 6, 2026

SUBJECT: Horse racing: satellite wagering facilities: authorizations.

SUMMARY: This bill would make revisions to existing Horse Racing Law governing current authorizations for satellite wagering facilities in the state. Specifically, this bill:

1) Expands the authorization for designated fairs to contract with licensed thoroughbred meetings or simulcast wagering operators for the operation and management of defined satellite wagering facilities within the City and County of San Francisco, extending this authority statewide rather than limiting it to the northern zone. Additionally, would delete a requirement that a one-year test period be held before licensing such a satellite wagering facility.

2) Expands a current exception for northern zone to the entire state that allows a racing association or any existing satellite wagering facility to grant consent to the location of another satellite wagering facility within 20 miles of the facility or track.

3) Makes technical and clarifying changes.

EXISTING LAW:

1) Article IV, Section 19(b) of the Constitution of the State of California provides that the Legislature may provide for the regulation of horse races and horse race meetings and wagering on the results.

2) Provides for the California Horse Racing Board (CHRB) that regulates the various forms of horse racing authorized in this state.

3) Prohibits a satellite wagering facility, except a facility that is located at a track where live racing is conducted, from being located within 20 miles of any existing satellite wagering facility or of any track where a racing association conducts a live racing meeting, except, in the northern zone, the racing association or existing satellite wagering facility is authorized to waive this prohibition and consent to locating the new satellite wagering facility within 20 miles of the facility or track.

4) Authorizes the Department of Food and Agriculture (CDFA) to approve no more than three satellite wagering facilities located either on the grounds of the 1a District Agricultural Association or within the boundaries of the City and County of San Francisco. The fair may contract for the operation and management of a satellite wagering facility with an individual racing association or a partnership, joint venture, or other affiliation of 2 or more racing associations or fairs that are licensed to conduct thoroughbred meetings or simulcast wagering within the northern zone.

5) States, before a satellite wagering facility may be licensed for the 1997 and subsequent calendar years, CDFA shall conduct a one-year test at the proposed site (mentioned-above) in order to determine the impact of the proposed facility on total state parimutuel revenues and on attendance and wagering at existing racetracks and fair satellite wagering facilities in the Counties of Alameda, San Mateo, Santa Clara, and Solano.

6) Permits the San Joaquin, Humboldt, Shasta, and Fresno Fairs, with the approval of CHRB and CDFA, to operate a satellite wagering facility on leased premises within the boundaries of the fair.

FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

Purpose of the bill. According to the author’s office, the bill is intended to provide technical and clarifying changes to the Horse Racing Law following the cessation of live horse racing in Northern California in December 2024. This update is necessary because current authorizations for satellite wagering and related distributions are tied to geographic racing zones (Northern, Central, and Southern). The bill would extend an existing satellite wagering authorization, contingent upon consent from entities involved in statewide live racing operations. It would not expand current law; rather, it ensures that an existing authorization remains available should the industry choose to utilize it.

Background.

Thoroughbred horse racing in Northern California. This follows a series of track closures and the rejection of regulatory proposals to conduct live fair meets at designated fairs. The long-standing regional circuit effectively ended after the permanent closure of Golden Gate Fields in June 2024, and the subsequent failure of a short-lived replacement meet at Pleasanton later that year.

A central reason for the absence of racing is the state’s shift toward operating a single Thoroughbred circuit. Members of the CHRB, along with industry groups such as the Thoroughbred Owners of California, have argued that reinstating Northern California racing would redirect purse money from the live Thoroughbred meets in Southern California.

Some CHRB members have stated publicly that the current pause is intended to be temporary. However, they have emphasized that live racing in the southern part of the state must first be stabilized before any reconsideration of licensing a revived Northern California circuit.

Wager via simulcast. Simulcasting is the process of transmitting the audio and video signal of a live racing performance from one facility to a satellite for retransmission to other locations or venues where pari-mutuel wagering is permitted. Simulcasting provides racetracks with the opportunity to increase revenues by exporting their live racing content to as many satellite wagering locations as possible, such as other racetracks, fairs, and Indian casinos. Satellite wagering facilities accept wagers on races broadcast via simulcast from in-state and out-of-state racetracks. These locations, in turn, generate a great deal of revenue from satellite wagering. Sometimes, the facility is a simulcast facility without live horse racing.

For over 30 years, California has allowed off-track betting at satellite wagering facilities across the state. Satellite wagering was authorized when California racetracks were experiencing declining attendance and handle figures. At the time, the industry believed that making the product more accessible would expose and market horse racing to more customers and make it easier for existing customers to place bets more often. Currently, there are 24 satellite-wagering facilities throughout the state.

In 2007, AB 241 (Price), Chapter 594, Statutes of 2007, authorized the creation of 15 additional “mini‑satellite” wagering facilities in each racing zone, for a statewide total of 45. The purpose of this legislation was to expand access to horse racing for potential California bettors and to increase the daily wagering handle. To date, ten mini‑satellite facilities have opened across the state.

Since 1994, AB 1418 (Tucker) has also permitted the Department of Food and Agriculture to approve up to three satellite wagering facilities to be jointly licensed to the 1a District Agricultural Association and the 5th District Agricultural Association. These facilities must be located either on the fairgrounds of the 1a District Agricultural Association or within the boundaries of the City and County of San Francisco. To date, none of these authorized satellite facilities have been established.

Status of the horse racing industry in California. The California horse racing industry's long-term health is threatened by a combination of factors, including competition from racing in other states, other forms of gaming within California, declining attendance, and the potential for higher return from development than operating revenues. As resources shrink, the industry is experiencing deficits in virtually every one of its revenue sources. Traditional take out, allocation and distribution formulas are no longer able to sustain ongoing operations.

As the value of racing operations declines, track ownership is struggling to maximize the necessary return on the investment and tempted by alternative uses of the property that yield higher returns. Consequently, the racing industry is suffering unprecedented instability and capital flight. Tens of thousands of industry jobs are in immediate jeopardy, along with breeding farms and precious open space in urban centers throughout California. Also at risk is a substantial amount of local and state revenue generated both directly and indirectly by the industry.

Related legislation. AB 1526 (Committee on Governmental Organization) of 2025. This bill would make various technical and non-substantive changes to provisions of the Horse Racing Law, as specified. (Senate Inactive File)

SB 844 (S. Rubio) of 2025. This bill would increase a current cap on the importation of out-of-state thoroughbred races by a thoroughbred association or fair, on days when live thoroughbred or fair racing is being conducted in the state from 75 to 80 races-per-day. (Assembly Committee on Governmental Organization)

Prior legislation. AB 3261 (M. Fong), Chapter 439, Statutes of 2024. Increased a prior cap on the importation of out-of-state thoroughbred races by a thoroughbred association or fair, on days when live thoroughbred or fair racing is being conducted in the state from 50 to 75 races-per-day.

AB 1074 (Alanis), Chapter 275, Statutes of 2023. Provided if the CHRB does not license a thoroughbred race meet at a racetrack (Golden Gate Fields) located in the cities of Berkeley and Albany after July 1, 2024, and no live horse racing is being conducted in the northern zone, this bill would deem a thoroughbred racing association or racing fair in the southern or central zone, as specified, to be operating in the northern zone for the purpose of conducting all permissible forms of wagering in the northern zone and making and receiving required distributions from those wagers.

SB 1439 (Price) of 2010. Would have decreased the exclusion zone in which a "mini-satellite" horse racing wagering facility can be situated in proximity to an existing horse racing satellite wagering facility or live horse racing racetrack from a 20 to 15-mile radius. (Failed passage on Senate Floor)

AB 2215 (Fuentes), Chapter 255, Statutes of 2010. Among other things, authorized a mini-satellite wagering facility to enter into an agreement with an advance deposit wagering (ADW) provider to accept and facilitate the placement of any wager at its facility that a California resident could make through that ADW provider.

AB 241 (Price), Chapter 594, Statutes of 2007. Increased up to 45 mini-satellite wagering sites throughout the State, as defined, that would be able to offer wagering on horse racing via satellite wagering in the northern, central and southern racing zones, as specified. This bill authorized any fair to operate a satellite wagering facility on leased premises within the boundaries of that fair, as specified.

AB 2554 (Thomson) Chapter 874, Statutes of 2002. Authorized the CHRB to approve the Solano County Fair to operate a satellite wagering facility on the fairgrounds or on leased premises in Solano County as specified.

AB 2338 (Papan) Chapter 1063, Statutes of 2002. Provided that the San Mateo County Fair may operate a satellite wagering facility on its fairgrounds or on leased premises in San Mateo County contingent upon the closure of a racing association as specified.

AB 1418 (Tucker), Chapter 311, Statutes of 1994. Among various provisions, allowed the Department of Food and Agriculture to approve not more than 3 satellite wagering facilities that are licensed jointly to the 1a District Agricultural Association and the 5th District Agricultural Association and that are located on the fairgrounds of the 1a District Agricultural Association or within the boundaries of the City and County of San Francisco.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531