AUSTIN, TX—AUGUST 31, 2015—Unable to agree on whether to defund the Texas Racing Commission for its approval of 'historical racing', Texas lawmakers worked today (Monday) to reach a compromise that could allow the agency to remain open at least temporarily.

The temporary funding will allow Lone Star Park to run it's Quarter Horse meet scheduled for September 18-November 14 and features the Bank of America Challenge Championships November 6-7, will go without a chance that it will shut down.

State senators, who had been pushing for the commission to close, agreed late in the afternoon to issue temporary funding, but state House members appeared to be holding firm on their demand for full funding, leaving the possibility of a deal in doubt.

The negotiations came just hours before a funding shortage could force the closure of the commission, which oversees horse racing in Texas. That, in turn, could shutter the multi-million dollar industry.

Lt. Gov. Dan Patrick, who represented the Senate in the talks, said he would allow the commission to reallocate funds within its budget to stay open. House budget writer John Otto said he had not yet agreed to that, however.

The deal may also require approval from Texas Governor Greg Abbott.

Otto said it was "imperative that this industry be allowed to continue as a fully-regulated industry," but he said a temporary fix would leave the agency in limbo.

The dispute continues a year-long drama around the racing commission's approval of "historical racing" which allows players to bet on previously-run races that have been stripped of identifying markings. The machines could bring significant revenue for the state's struggling horse tracks, but it has drawn criticism because its terminals resemble slot machines.

Patrick and Senate budget writer Jane Nelson argue the commission did not have the authority to approve the game because it would expand gambling. In response to the approval, they got part of the agency's budget put under control of the Legislative Budget Board.

Senators expected that move would force the commission to repeal its authorization of historical racing, but last week the commission surprisingly voted not to do so.

The board is run by Patrick and state House Speaker Joe Straus, but Straus recused himself from the process because his family is involved in horse racing, leaving Otto to represent the House.

The amount of money in dispute is only about $1.5 million, but it was critical to the survival of the agency because it was dedicated to paying the central staff and rent for the commission, which has a budget of around $15 million.

Under state law, agencies cannot reallocate money within their budgets without approval from the Legislative Budget Board.

On Monday, commission Executive Director Chuck Trout pleaded with the Legislative Budget Board to at least temporarily approve funding.

Trout wrote in a letter to lawmakers that if the board does not release the funding for the commission's central administration by the deadline, the agency could not pay its employees and would be forced to close. Because state law requires commission staff to oversee races, that would force the industry to closure in the state of Texas.

According to Trout such a closure would prevent staffers from getting final paychecks and the commission from complying with the public-records law.

Temporary funding would at the very least "allow the agency to wind down operations in an orderly fashion that would be greatly beneficial to our employees, licensees, the entire pari-mutel racing industry and the State of Texas as a whole," Trout wrote.

Commission spokesman Robert Elrod said in an interview that he was encouraged by the compromise put forward by the Senate but could not tell if anything would get done.

"It looks like we don't have a deal to hang our hat on just yet," Elrod said.