Hollywood Park racetrack will close by the end of the year with the property earmarked for residential and retail development.

The 75-year-old racetrack in Inglewood is the second major California racetrack to close since 2008 when Bay Meadows near San Francisco was shut down after 74 years to make way for a similar development.

The track announced on Thursday (Friday AEST) it would not apply to the California Horse Racing Board for 2014 dates, signalling the end of the line for a property which has had an uncertain future since Churchill Downs sold it to Hollywood Park Land Co in 2005.

At the time, the new owner said racing would continue for a minimum of three years while an effort was made to revitalise the sport's business model.

But the track had little luck in stemming declines in wagering and attendance, problems that plague the racing industry nationwide. Statewide initiatives to install poker machines at the track also failed.

"From an economic point of view, the land now simply has a higher and better use, so, unfortunately, racing will not continue here once the 2013 autumn meet is completed," track president Jack Liebau said.

The owner spent more than $8 million to replace the track's dirt surface with synthetic Cushion Track in 2006 as part of a then-statewide mandate for such surfaces.

A casino on the property will continue to operate, and is expected to be renovated as part of the new development, Liebau said.

The track's 260-acre footprint will be turned into 3000 new housing units, including single-family town houses and condominiums; 25 acres of parkland, including a 10-acre central park; and a retail and entertainment district, anchored by a movie theatre, office space and a 300-room hotel.

Liebau said the track owner has secured all entitlements with the city of Inglewood.

"Construction can start almost immediately after the first of the year," Liebau said.

Hollywood Park's last race will be on December 22.

"They are scrambling on where they're going to house these extra horses," Liebau said, noting that when Hollywood Park isn't hosting live racing there are still about 1000 horses on the grounds.

Hollywood Park opened in 1938 under the direction of movie moguls Jack and Harry Warner.

Among the star horses that ran at Hollywood Park were Seabiscuit, and Triple Crown winners Citation, Seattle Slew and Affirmed.

Champion mare and 2010 Horse of the Year Zenyatta was based at Hollywood Park, as was I'll Have Another, last year's Kentucky Derby and Preakness winner.

The Breeders' Cup began at the track in 1984, and was held there again in 1987 and 1997.