IDAHO FALLS (AP) - An eastern Idaho horse racing track has folded on trying to keep its lucrative betting machines off-site after months of defending the legality of the machines' location.

The Post Register reported that owners Jim and Melissa Bernard submitted an application on July 30 to operate instant horse racing betting terminals closer to the Sandy Downs racing track in Idaho Falls.

The application must now be approved by city officials, said Idaho Falls Director of Parks and Recreation Greg Weitzel.

Known as instant horse racing, the machines allow bettors to place wages on prior horse races with no identifiable information. Just three of the state's nine race tracks in Idaho have historical racing: Boise, Idaho Falls and Post Falls.

"It's everything," Melissa Bernard said. "Without the (instant racing) revenue, the (live) races can't run, and people can't afford to breed (horses). When we said historical racing would save live racing, that's absolutely true."

Instant horse racing has been legal since 2013. Proponents argue the machines are simply the latest technological advance in a legal type of gambling in Idaho. With live horse races no longer attracting the big crowds at Idaho's horse tracks, the machines are seen as vital money makers to help subsidize the industry.

Opponents counter that the machines are cleverly disguised slot machines, which are illegal in Idaho.

According to Idaho law, all instant racing must take place on a state-licensed racetrack, with the exception that the racetrack may allow simulcast and pari-mutuel betting off-site to attract more customers. This is because most Idaho racetracks are tied to county fairgrounds, which are normally away from major cities.

Sandy Downs is the only horse racing track in the state to operate instant horse racing terminals off-site. However, lawmakers raised questions about the legality of off-site operation earlier this year, claiming county officials did not give the proper approval.

At the same time, the Idaho Legislature went on to pass legislation banning the machines, but Gov. Butch Otter vetoed the bill. The legality of the veto is now the center of a lawsuit.

"The governor's message in his veto was that the Legislature's intent was to have historical racing located at the track, even though they wrote legislation that allowed it to be off-track," Melissa Bernard said. "We're just good citizens of the community. If that was not the Legislature's intent and that was not the governor's intent, we just want to do what's right."