There will be horse racing at Hanover Raceway this year.

As first reported by Bayshore Broadcasting News on Friday morning -- Hanover Raceway has signed a letter of intent with the provincial government to have harness racing for the next three years.

Hanover Raceway General Manager Gord Dougan says they will have money to operate for two years, with the opportunity for a third year.

Dougan tells Bayshore Broadcasting News they will have 20 days of racing this year and 18 days next year.

Dougan says what is more important is a promise from the Premier to have horse racing part of Ontario's gaming strategy.

Dougan tells Bayshore Broadcasting News that is vital to their success over the next 50 years.

Dougan says they will no longer compete with the OLG -- and instead, it will open the door for more revenue streams.

That could mean more complex betting and sports betting at race tracks -- for example, you may be able to bet on an NHL game at Hanover Raceway.

Dougan says their next step is to finalize when to open, which days of the week they will race and how much money they will have for purses.

Dougan adds they want to continue the Dream of Glory and Balanced Image races at Hanover this year.

Close to 90 people are employed at Hanover Raceway, and Dougan hopes to see large crowds this spring and summer in support of the employees and the harness racing industry.

The tracks at Clinton, Grand River and Western Fair have also signed two year agreements to replace the cancelled revenue sharing slot machine program.

The government reached two year agreements in January with the Woodbine Entertainment Group for the Woodbine and Mohawk racetracks.

The Liberals shocked the sector last year when they cancelled the 345 million dollars a year share of slot machine revenues that went to tracks, prompting several tracks to close or announce plans to close.

A government panel concluded the slot revenue accounted for 64 per cent of the annual income for the horse racing sector in Ontario, and more than 60 per cent of purse money.