Fife Council has apologised after events at Lochgelly Raceway were allowed to go ahead with spectators - despite a government ban on fans attending sports stadiums.
People have been allowed to buy "walk-in" tickets to stand and watch racing at the venue for several weeks, with those attending encouraged to follow strict coronavirus protocols like wearing face coverings, sanitising hands and standing two metres apart.
Drive-in tickets can also be bought - where people are required to stay with their vehicles.
But it has emerged that the events should not have taken place with fans on the terraces, with sports stadiums across Scotland currently banned from letting spectators in.
Nigel Kerr, who is head of protective services at Fife Council, told Kingdom FM: "The safety of the public is our first concern. We have apologised to the organisers of this event following a misunderstanding over the correct guidance.
"The appropriate advice has now been given and following discussion, the raceway have agreed these events should stop for now."
The latest event is due to take place at the raceway tomorrow - with walk-in admission available to buy until the middle of this week.
However, the website of organiser Hardie Race Promotions now says that walk-in spectators are not permitted as of October 1.
Kingdom FM asked Professor Jason Leitch, Scotland's national clinical director, about the issue today - his response is in the video above.
A spokesperson for the Scottish Government said: "Our route map is clear that focussed standing events, which involve spectators standing in a more limited space than open spaces, are not permitted at present.
"The vast majority of event organisers are acting responsibly, in line with the guidance, and we thank them for that. Not following the guidance is deeply irresponsible and poses a risk to people attending and working at events, and to the wider community."
Kevin McQueen, of Hardie Race Promotions, said: "We had been in communication with the council from when we first began restarting operations, initially with practice, then trackside viewing for events, and then for spectators.
"With each change, we had sent a risk assessment to the council for review, which included how we would operate track and trace, online booking, sanitising points etc.
"For each change, we were given the green light to commence with that version of the risk assessment, although with amendments as the council advised.
"The council contacted us yesterday to advise of there error, and upon discussions, the walk in spectator options were immediately removed from sale, with us reverting back to trackside viewing only in line with drive in event guidance. The customers that had purchased these have been offered a refund, or an upgrade to trackside viewing.
"It isn’t an ideal situation, however, at all times, we want to adhere to the council and government guidance, and as such, have removed the option of walk in spectators until further advised otherwise."
Last month, organisers of racing at nearby Cowdenbeath Racewall issued a statement, saying that events there could not go ahead with spectators until at least October 5 - although that date has now been pushed back until at least October 15.