As I understand it, CHRB did not have anything to do with Magna's voluntary decision to shut off its rebate program. As you know, racing & wagering is regulated on a state by state basis. In Calif, the regulations prohibit rebates under certain conditions, but the regs have not been enforced by the CHRB if everyone agrees to the deal.

One of the parties which has to agree to a rebate the deal which includes Calif horseplayers is the TOC. In this particular case, a single member receiving rebates may or may not have been a resident of Calif.

Magna also has to have approval, which TOC gave, in order for XpressBet to offer Calif signals to its customers. TOC is one of the parties which gave its approval, but since the approval there has been a great deal of dissatisfaction with Magna because of the cut-off of other acct wagering sites & the fact that its Calif races reach relatively few Calif TV viewers. My understanding is that there is a Dec hearing before the CHRB regarding whether or not XpressBet will be able to continue to offer Calif signals to its customers.

Based essentially on the possibility that one member receiving rebates was a Calif resident, TOC threatened to recind its prior approval for XpressBet to offer Calif signals unless Magna turned over information regarding the details of the rebate deal. In addition to turning over the information, Magna decided on its own to terminate the arrangement, presumably because of the TOC threats & the upcoming hearing. When you consider that Calif is just one of the states where Magna & others do business, & that only one person's residency was even questioned, it's easy to understand why so many of the industry's problems are so complicated & difficult to solve.