SAN CLEMENTE -- The sounds coming from the other side of the wall were unmistakable.

"Come on three. Come on three. Come on two. Come on seven."

Those words are uttered multiple times daily at race tracks and satellite wagering facilities across America.

But these sounds were coming from outside a patio at the OC Tavern in San Clemente.

In December, the OC Tavern, owned for the last five years by Carlsbad resident Mike Merrigan and his wife, Lisa, became the state's first sports bar/restaurant to offer off-track wagering. It's only the second facility -- the Commerce Casino card club was the first -- in California to offer betting on thoroughbreds, quarterhorses and harness racing under a 2007 law authorizing "mini-satellites."

On a mundane Thursday race day last week, Merrigan's horse racing room -- only patrons 21 or older are allowed into the wagering area -- didn't have many empty seats, and his patio area for smokers or those who just wanted to get a sun tan had a healthy number, too. There were two live tellers on duty - and a third could be added on busy days -- and plenty of self-serve betting machines lining the walls.

"I really think this is perfect timing," said Merrigan of starting a new venture. "(Horse of the Year) Zenyatta got people excited about racing again. I turned so many on to Zenyatta. On Oct. 2 (for Zenyatta's 19th straight victory), we had every TV on in here on her race. I told people, 'Watch this horse.' People started following her, and then (the movie) 'Secretariat' came out. Plus, the new HBO horse racing series 'Luck', I think it's going to help horse racing get back on its feet."

After Merrigan's brother-in-law told him about the new law in 2008, he contacted the Southern California Off-Track Wagering Inc. and the city of San Clemente to get the ball rolling.

"I was always intrigued by (horse racing)," said Merrigan, who attended races at Del Mar during his college days at San Diego State. "What business isn't looking to increase its business? I thought it would be great."

But first he had to convince the city.

Merrigan ran into the usual roadblocks, including concerns about parking and noise -- he's not allowed to have the sound up on the patio televisions for that reason. But he had one larger roadblock to overcome: gambling.

"They said you can't gamble," Merrigan said. "They put it right in that gamble category vs. pari-mutuel wagering. It's the same thing as the lottery. It's that same form. Educating them and showing them that, they were open to it.

"Looking back on it now, we accomplished a lot fast. When you're in the middle of it, it's like, 'Oh God, it's taking forever.' The thing was that we've always had entertainment here, and this was just another form of entertainment. I had a fair experience with the city."

The new mini-satellites must not be within a 20-mile radius of a race track like Del Mar or Los Alamitos or any other satellite wagering facility like Del Mar's Surfside Race Place or a tribal casino. The OC Tavern, located right off the Avenue Magdelana exit on Interstate 5, is 41 miles away from Del Mar.

And even though Surfside general manager George Bradvica knows it might have a big affect on his customers not coming down from south Orange County, he's willing to play ball.

"We took a position here at Del Mar that we want to support the racing industry," Bradvica said. "The racing industry needs to get stronger and the industry needs to find ways to generate more handle. Even though our indications were that this would take business away from us, we felt it has a chance to develop more people in racing. Perhaps for the greater good, it would increase business in the surrounding area and ultimately support a larger base of customers who enjoy horse racing, and ultimately we would enjoy the fruits of that as well.

"These are the first two and they are being used as trial balloons, that's for sure. The industry is going to take a look at these and see how successful they are. If they are successful you will see more."

On this Thursday, Vista resident Mike White, 49, was making his second trip to the OC Tavern.

"It's a lot closer and less traffic," said White, who was wearing a Surfside hat and is a former exercise rider. "There's no hassle. The food is good. It's very mellow here. I could even take the train from Oceanside to here."

For his part, Merrigan just wants to get along.

"I want to work with everybody," he said. "I'm here to help, not take away.

"I think (this concept) is good because it's an intimate setting. What has been working for us is that all the horse fans are coming together and there's a good energy and vibe in there. I think our society is into instant gratification. They can get their winning bet paid out instantly. I don't how long it takes (on Advanced Deposit Wagering like Television Games, XpressBet or Twin Spires) betting at home.

Merrigan is already working on cross-promotions with Los Alamitos -- White read about the OC Tavern in a flyer from the track -- Santa Anita and the Del Mar Thoroughbred Club.

"I know there is nothing like going to the track live," Merrigan said. "My goal here is to get people excited about racing again, and here's a pass to go see live racing."

Merrigan receives 2 percent of the betting handle at the OC Tavern, but he said that was never his "motive or focus."

"If you look at it, a guy comes in and wagers $100, I get $2," Merrigan said.

"That isn't going to keep me in business. I'm hoping he comes in and buys lunch and something to drink. I'm appreciative of the (2 percent), but that was never my motive.

"Look behind us you see all these beautiful homes and you see all those beautiful homes toward the beach. I tried everything to get people in, and now it's amazing with horse racing. They come in and say, 'If we had realized the food was so good, we would have been here sooner.' It took horse racing to get them in. I'm fortunate and glad that it all worked out."

Contact staff writer Jeff Nahill at 760-740-3550.