The entire board of Greyhound Racing New South Wales has been dismissed following revelations of widespread live baiting within the industry.
The state's racing minister Troy Grant said his government wanted to restore the integrity of the industry.
The prevalence of live baiting was highlighted by a television current affairs programme that revealed live animals like rabbits, possums and piglets were being used to blood the dogs for a competitive edge on the track.
Dozens of greyhound trainers around Australia are now facing prosecution and possible lifetime bans from the sport.
So far, six trainers have been stood down in New South Wales, 10 in Victoria and 13 in Queensland.
Live baiting has been banned and criminalised for decades, but trainers and owners across the country have allegedly been using the illegal training method in the belief that it will improve a dog's performance.