Australian gambling companies are poised to take over TAB’s role in New Zealand if a report into the racing industry is adopted by the Government.

Sources familiar with the contents of the report says it recommends that race betting in New Zealand be outsourced to an Australian company, effectively meaning the end of TAB.

TAB turns over more than a billion dollars in race bets and returns a total of about $150 million annually to the racing codes, gallops, harness racing and greyhounds. The report has also recommended almost halving the number of tracks.

Australian racing expert John Messara has delivered his report to Racing Minister Winston Peters, concluding the industry is in a state of “serious malaise”.

The review warned thoroughbred horse racing was at a tipping point of irreparable damage.