ELORA, ONT. — Ontario's beleaguered horse racing industry is going to live to ride again.

An industry that was nearly euthanized by the Liberal government is finding its second wind after agreeing to a different funding arrangement with the province.

Wearing her agriculture minister’s hat, Premier Kathleen Wynne announced that four more racetracks — Clinton, Hanover, London and the Grand River track in Elora — have signed on to a far less lucrative deal than before but one that will keep the industry alive. Mohawk and Woodbine had already signed a three-year transition funding agreement for about half of what they were getting.

There are still eight tracks to sign on. Wynne told reporters at the Elora track the new arrangement will give the industry “long-term stability” but added the industry is going to be smaller.

“This is such an important industry . . . and we have maintained as a government that we want to have a sustainable horse racing industry,” she said.

“We are working to ensure that the date for the 2013 racing season will be in place and provided long-term stability.”

The horse racing industry, which employs somewhere been 50,000 and 60,000, was knocked back on its heel when former finance minister Dwight Duncan slammed the door on an income sharing program that began in 2000, arguing that the debt-ridden province could no longer afford to hand over $345 million to the horse racing industry.

Slot machines have been removed from racetracks in Windsor, Fort Erie and Sarnia.

An industry source told the Star that racetracks and breeders can expect to receive about half of what they were getting.

No longer will the tracks get a share of the slot machines but rather the Ontario Lottery and Gaming Commission will pay rent for housing the machines, in addition to an unspecified top up from the province for purses.

The industry argued just as vehemently that in 12 years it provided Ontario with $1.1 billion in revenue and $261 million in taxes.

However, a 30-page report from three former cabinet ministers from all three major political parties concluded that reinstating the program that pours profits from slot machines at racetracks into horse racing would be “poor public policy,” and added that keeping the horse racing industry viable would require more funding to maintain prizes for winners, keep the tracks in good operating condition, support horse breeders and keep the betting system robust.

“It is my contention there is room for horse racing, health care and education,” Wynne said.

Wynne said she realizes a lot of people count on the horse racing industry for jobs and “we needed to make sure that there weren’t enormous unintended consequences of a decision that was made last year.”

“There is still a long road ahead of us,” Sue Leslie, president of the Ontario Horse Racing Industry Association, said in a statement. “However we now have the opportunity to plan a more sustainable future for the horse racing and breeding industry working in partnership with the government instead of competing against the Province's other gaming products.”

Critics condemned the Liberal government for turning the industry upside down in the first place.

“What we would have done and this government didn’t do was consult with the industry ahead of time. They (the Liberals) threw them for a loop a year ago and now we’re here for a photo opportunity a year later with no details,” Tory MPP Michael Harris said.

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NDP MPP Taras Natyshak said the Liberals are desperately trying to butter up rural Ontario voters “and I don’t think it is going to work.”

Wynne said the horse racing industry panel, consisting of former cabinet ministers Elmer Buchanan, John Snobelen and John Wilkinson, will continue to work with the industry.

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