Wagering and keno firm Tabcorp expects punters in NSW to shift their bets to other forms of racing after the NSW government's decision to end greyhound racing.
Tabcorp says greyhound racing in NSW generates about five per cent of the group's total wagering turnover.
" Tabcorp expects a significant level of substitution will occur to other wagering product, such as thoroughbred racing, harness racing, sport and animated racing," it said on Thursday.
Shares in Tabcorp dropped 20 cents, or 4.4 per cent, to $4.39, after hitting a low of $4.25 during the day.
Victoria has ruled out a ban and Western Australia has distanced itself from the NSW industry, but the ACT looks set to follow NSW in outlawing the sport.
Tabcorp said its media business, Sky Racing, will work with other Australian and international racing industry bodies to source alternative racing to replace the broadcast of greyhound races in NSW.
The NSW government's decision comes after a special commission of inquiry found overwhelming evidence of animal cruelty, including mass greyhound killings and live baiting.
The NSW government plans to shut down the greyhound industry in the state as of July 1, 2017, and all races have been suspended for a week.
