An independent report into the state of the racing industry has 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''.
Mr Peters said his intention was to have officials produce a Cabinet paper with a set of recommendations and the severity of the situation for the industry meant the status quo was unlikely to prevail.
The review warned thoroughbred horse racing was at a tipping point of irreparable damage, Mr Peters said.
The 17 recommendations also include beginning negotiations for outsourcing the TAB's commercial activities to an international operator.