Well, that's interesting! I haven't heard anyone put forward the idea that racing could shrug off its current fascination with trying to get more money out of the bookies, let alone exchanges, which feed off its produce. At present, most races are sponsored, be it little local businesses, grandpa's 80th birthday celebration, or via some really big hitters which include bookmakers &c. There are the excellent picture rights, of course, which courses should still receive payment for, and there are the increasing hospitality packages which can be amazingly costly for the premier meetings.
Can it survive? Yes, it I think it can survive and, with the use of British courses more and more as non-racing vehicles for other events, show a decent profit - although it would be necessary for the commercial (non-racing) side to kick in its profits (which can be considerably more than the racing ever brings in) towards prize monies.
On the other hand, maybe the installation (gulp!) of slots and an extension of the racing day into casino/nightclubbery with music and dancing wouldn't be too quantum a leap? After all, the ingredients are usually available at most courses - especially somewhere vast like Epsom, with its huge entertainment suites. Just expand the remit of licensing and also build onsite hotels (these to be put up by companies like Marriott, Hilton, etc.) so that guests have a 'total experience'. Chuck in some spa treatments and possibly a spot of golf, and you could turn racecourses into a full-sized holiday venue. And what, one asks, would be so wrong with that? Stay, relax, eat well, go racing, win a wad, play some roulette, lose a packet, play some golf and host a birthday party, go home happy. Keep all prices aimed firmly at a middle income level and what's not to love?