ALBANY — The New York Racing Association said yesterday it is closer to emerging from bankruptcy, and horse racing in the state got a potentially lucrative boost with a decision allowing racetracks and off-track betting facilities to take wagers over the Internet.

NYRA holds the state’s franchise to run thoroughbred racing at Aqueduct, Belmont, and Saratoga. The group said a federal judge approved its amended plan to pay back creditors, a deal funded by a $105 million state bailout.

The state’s racing regulator, the Racing and Wagering Board, said it will allow bets to be taken from phones, including cell phones, over the Internet, or by other electronic means. Some Internet betting has been temporarily allowed since last summer.

In another development, bidders who created Hard Rock cafes and others who helped bring big-time casinos to Connecticut want to turn Aqueduct into a Queens hot spot.

The bidders who submitted proposals to run video slot machines represent a partnership of racing operator Capital Play Inc. and the Mohegan Sun casino; Aqueduct Gaming, which includes Delaware North Companies Gaming and Entertainment of Buffalo and Saratoga Harness Racing; and SL Green Realty Corp., a New York City developer with plans to build a Hard Rock entertainment facility.

The video slots franchise will be awarded after Governor Paterson and legislative leaders review the proposals during the next two weeks.

The state split the racing franchise from the video slots franchise this year, although revenues from the video slot machines will help fund the tracks and thoroughbred racing. Video slots are not allowed by law at Saratoga or Belmont.