SCIENTIFIC GAMES KNOWINGLY ROBBED CALIFORNIA CONSUMERS, QUICK PICK TICKETS STILL BEING SOLD

California Political Desk
SACRAMENTO – In what started as one horse race bettor in San Mateo, California, noticing a statistical irregularity has now triggered a national investigation and scandal for an already volatile industry.

On May 3, 2008, a thoroughbred owner placed 1,300 - $1 "quick pick" bets at Bay Meadows Racecourse for the Kentucky Derby superfecta, in which the first four finishers must match the exact order of an individual ticket. However, the "20" horse was not included in any of the possible 5,200 spots on the bettor´s tickets. The "20" horse, ironically, was the race favorite and eventual winner, Big Brown. A winning $1 bet would have paid $29,368.90.

Scientific Games, the company that processes such bets at California tracks as well as many other venues across the country including the California State lottery scratch tickets, said the error was the result of a computer glitch in the program which indefinitely excluded the highest numbered horse in every race from being part of the quick pick pool.

Despite a directive from the California Horse Racing Board (CHRB) to Scientific Games to cease accepting quick pick wagers, such tickets are apparently still being sold at California tracks. In addition, Scientific Games´ "computer glitch" excuse is also now in question, as a number of recently purchased quick pick tickets include the highest numbered horse in the field.


"Scientific Games has a history of scamming consumers," said Senator Leland Yee (D-San Francisco/San Mateo), who earlier this week called on the State Auditor to investigate the latest scandal. "Californians deserve better and at the very least, the public deserves answers."

In 2002, employees of Autotote, a Scientific Games subsidiary, rigged bets on the Breeders´ Cup worth $3.2 million. The employees later pleaded guilty to fraud.

According to correspondence between Scientific Games and the CHRB on May 15, the company was aware of software malfunctions as early as October 30, 2007. CHRB officials say they were never made aware of the problem, resulting in thousands of California consumers being defrauded for months.

"I can´t understand how the State of California, either thorough horse racing or the lottery, can contract with a company that has such a history of deceiving the public," said Yee. "I find it equally troubling that the CHRB has failed to administer an independent monitoring system of these machines. As someone who wants to see horse racing thrive again in California and be the economic engine and job creator it once was, these types of incidents make such a goal unattainable."
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California Political Desk

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