Gaming Advisory chairman Jon Hanson told a hearing in Oceanport Wednesday that racing could be as much as $45 million in the red for the season that begins in January.
Gov. Chris Christie agreed with the recommendation and proposed ending a $30 million annual payment.
Christie also adopted Hanson's recommendation to focus scarce state resources on improving Atlantic City's casino district.
Democrats in the New Jersey Legislature are holding their third hearing on the issue at Monmouth Park racetrack.
Horsemen say they're developing a new business model for their industry's long-term survival.