The Manitoba Jockey Club has pulled out of a court challenge over the future of the Assiniboia Downs betting licence.

Late last year, the Manitoba Horse Racing Commission threatened to yank the track's licence over a development deal with Peguis First Nation.

The commission has concerns about a $15 million mortgage Peguis extended to the Downs.

The jockey club wanted to fight the issue in court but, after a morning hearing Feb. 25, has decided to go before the horse racing commission instead.

This after the judge questioned if the court route was the proper jurisdiction to hear the case.

The jockey club has alleged the Selinger government has influenced the commission to pull the license.

The province has denied the allegation.

The Selinger government and the jockey club have been at odds since the province pulled VLT money from Assiniboia Downs.