The Selinger government has settled the legal dispute with Assiniboia Downs over the track's VLT revenue.
The Manitoba Jockey Club (MJC) sued the province after it threatened to cut $5 million in VLT money.
Former finance minister Stan Struthers previously said he wanted to divert the money from the racetrack to core services like health care.
The province issued a release Wednesday afternoon, saying a "VLT siteholder agreement" had been inked for the Downs between the Manitoba Jockey Club and Manitoba Liquor and Lotteries Corporation.
The agreement covers the next 12 years and keeps the same number of VLTs, 140, on site.
In the first 10 years of the agreement, the province will provide supplementary funding to MJC in the form of grants, starting at $5.4 million in year one and decreasing to $3 million in year 10, said the province.
"In years 11 and 12, there will be no grants. At that point, the revenue to MJC will be the revenue generated through VLT commissions and contributions alone under a VLT siteholder agreement," said the province.
The jockey club previously announced plans to forge a partnership with Peguis First Nation.
The province said Wednesday's agreement between it and the jockey club provides a "bridge" aimed at helping with sustainable horse racing in the interim.
The province said it and the jockey club are pleased the agreement will mean horse racing will continue uninterrupted at Assiniboia Downs.
"With this agreement having been reached, MJC will immediately discontinue all of its outstanding litigation against the government, its ministers and all government-related entities and individuals," said the province.
- with a report from Jeff Keele
