Incoming prime minister Jacinda Ardern announced Peters would take the role when she unveiled her full list of ministerial portfolios.
Peters was hailed as a hero by the racing sector for initiatives that included huge stakes increases and tax reform during his last tenure as racing minister from 2005 to 2008.
He brings with him the New Zealand First racing policy which the Labour Party agreed to support in their coalition agreement.
That policy could include a pledge by the party to restore what it calls marque racing plans and the sort of prize money Peters implemented in his last term.
Then, Peters oversaw a $9million, three-year scheme to significantly lift prize money for key races.
The New Zealand Derby was lifted to $2.2million and a group of other feature races went to a $1million stake.
The prospect of those stake levels returning already has mouths watering in the racing industry.
However, North Taieri horseman Brian Anderton, who gave Peters' appointment his tick of approval, hopes the new minister can work to boost stakes at a grass-roots level.
''I would like to see him get the stakes up - the bottom stakes, not the top-end stakes.''
Among its 10 key policy promises, New Zealand First has pledged to reform racing taxes, introduce a new $15,000 stakes category, enhance employment and export opportunities, boost the breeding industry and work to improve the appeal of the racing industry.
The party will also urgently review what it calls the operations and costs of the New Zealand Racing Board.
Industry leaders, who welcomed Peters' appointment, are eager for him to oversee the long-awaited completion of the race fields legislation.
After months of waiting, the Racing Amendment Bill finally had its first reading before the dissolution of parliament for the election.
Harness Racing New Zealand chief executive Edward Rennell expects the passing of the Racing Amendment Bill to be one of the first topics of conversation he has with Peters.
''I think, obviously, the race fields legislation is something we are all very keen to see come in to effect.''
HRNZ had a good working relationship with Peters during his last tenure as
minister,Rennell said.
''It is great to have a minister that has an interest in racing and we look forward to working with him again.''
New Zealand Thoroughbred Racing chief executive Bernard Saundry was also eager
to discuss the long-awaited legislation with Peters, he
said.
Saundry endorsed the New Zealand First racing policy and is keen to help the new minister work on delivering its aims.
''There are a lot of positive initiatives there and we will work with minister and the coalition government to deliver improvements for thoroughbred racing.''
Peters was also appointed deputy prime minister, and will also take the portfolios of foreign affairs and state-owned enterprises.
