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Yes, you can delete the small racetrack and replace it with a large racetrack. Doing so will help improve your competition prestige over time. Keep in mind that your existing race will be deleted when the small track is deleted. It won't transfer over to the new track. You will have to start over and your competition prestige will temporarily decrease until your race is up and running regularly again on the large track. Also note that you need to have two racetracks both hosting races to have good overall competition prestige. They can be both trot, both gallop, or one of each, but you need two racetracks hosting competitions otherwise your prestige will always be low as it will be factoring in a 0 for the second missing racetrack.