The Western Fair District says Gateway Casinos' decision to locate their new casino in southwest London could put harness racing at risk.

As CTV News reported Wednesday, Gateway Casinos has leased a location on Wonderland Road for its planned casino, though it still requires rezoning.

Word came as negotiations involving Gateway, the Western Fair and the city to locate the casino at the Western Fair District dragged on for over a year-and-a-half.

Hugh Mitchell, Western Fair's president says, “So the news of Gateway possibly relocating to Wonderland Road South is very disappointing for sure for Western Fair Raceway. We’re not totally shocked because we've been in discussions with Gateway for several months now and we knew what their options were, but we are disappointed, and disappointed for the whole racing industry."

The organization says the decision puts harness racing at The Raceway at Western Fair - and the future of the horse-racing industry in the entire region - in jeopardy.

Mitchell says, "We were trying to preserve the lease revenue that the government has negotiated with us a number of years ago with the cancellation of racetrack slots....Gateway, in their wisdom, protecting their business interests, weren't prepared to support Western Fair Raceway to the degree the government had, and that's what went wrong."

The Western Fair is now hoping to work with the Ontario Lottery and Gaming Commission and the provincial government over the next few weeks to get financial support in place to continue their racing operation without Gateway if necessary.

In addition to the issue of the amount of funding for harness racing Gateway was willing to provide, Mitchell says the company was looking at a more standalone casino rather than one that was integrated with the racetrack and the existing facility.

While those in the horseracing industry are optimistic, if the government doesn't step in to assist, they say it could be catastrophic for the horse racing and breeding industry in the region.