The Ontario government says it will subsidize the province's horse racing industry to the tune of $400 million over five years.

Premier Kathleen Wynne made the announcement at the Grand River Raceway in Elora, near Guelph, on Friday morning. 

Most of the funding will be directed towards purse money, the Toronto Star has reported. 

The future of horse racing in Ontario was put into question after the province ended its Slots at Racetracks program — which saw a percentage of revenue from slot machines go to purse money — last March. 

The government had set up a three-person panel to study the state of the horse racing industry. The panel released a report last fall that said the industry could survive without slot money, but would require tens of millions of dollars from the government to transition to another funding model. 

The changes come as part of the provincial government's reform of gambling in Ontario. The Ontario Lottery and Gaming Corporation introduced its controversial "modernization" plan, which will change where casinos are located across the province.