In California, proof of ownership was shown with the 'pink' copy of the vehicle registration. You could sell your car by signing over the pink slip to the new owner. Or you could bet the pink slip on the outcome of a race. It is gambling and not necessarily legal.
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It means that the loser gives up their vehicle & the registration/papers;ie-"pink slips". A type of race where winner literally takes all, including the loser's ride. I believe the registration/ownership papers are pink in shade.