AUSTIN, TX—AUGUST 25, 2015—The Texas Racing Commission today (Aug. 25) refused to back down from its approval of 'historical racing' machines even after lawmakers threatened to cut off its funding.

The commission, which oversees horse and greyhound racing in Texas, voted 4-3 to retain its approval of "historical racing" and requested its funding from the state Legislature.

The vote adds yet more drama to a year-long dispute between the commission and the Legislature and puts the fate of the machines in the hands of the courts, which is currently weighing whether the agency had the authority to approve it.

However, immediate results could be severe. The commission might lose its funding next week and racing in Texas consequently could be halted.

Andrea Young, president of the Sam Houston Race Park in Houston, said a vote the other way would have been “anti-Texan” and “anti-horse racing,” but now, at least, the industry can go forward with court hearings on the legality of historical racing.

The new form of betting offers the floundering horse racing industries in Texas hope for survival, Young and other said at the hearing. It would inject needed capital into the system and allow purses for winning animals to grow and be more competitive with those in surrounded states that can supplement winnings with proceeds from other types of gambling, she said.

“We are proud of the commission’s willingness to stand by the Texas horse and racing industries,” Young said. “We look forward to having our day in court on historical racing, and are confident that the Court of Appeals will uphold the validity of these essential rules. We continue to have hope that the historic Texas horse and racing industry can thrive in Texas, continuing to employ thousands of hard-working people and contributing millions in revenue to the Texas economy.”

The racing commission initially approved the machines last August, but that move drew heavy criticism, from state lawmakers who felt the agency did not have the authority for such an approval -- the question to be decided in the courts.

A judge has already said the commission did not have the authority for the approval, but that decision is being appealed.

Sam Houston Race Park was host to more than $135 million worth of betting last year, according to the commission's most recent annual report. There are two other major horse racing tracks in Texas - Lone Star Park near Fort Worth and Retama Park outside San Antonio.

Overall, the tracks contribute about 36,000 jobs and $5 billion to the Texas economy, according to the industry.

After the vote, a racing commission spokesman said he was not sure if lawmakers would release the money.

"We're still waiting to hear on that," said the spokesman, Robert Elrod. "It's up in the air."