Greyhound racing has been banned in NSW, but Victoria has no plans to scrap the sport.

Greyhound racing has been immediately suspended for the next seven days in New South Wales in the wake of a shock state government decision to ban the sport from next year.

In a statement released on Thursday, Greyhound Racing NSW said the decision to ban racing from July 1 next year would rock everyone involved with the sport.

"Today is an extremely sad day for the NSW greyhound racing industry and the people involved in it," a GRNSW spokesman said in a statement.

Vince Caligiuri Dogs preparing for a greyhound race in Sydney. The sport will be outlawed there from 2017.

NSW premier Mike Baird announced earlier on Thursday the sport would be banned after releasing a report which found evidence of systemic animal cruelty within the industry.

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MATT KING/GETTY IMAGES New South Wales Premier Mike Baird has banned greyhound racing.

GRNSW said they had taken decisive action to recover community trust in the wake of revelations of live-baiting and other cruel practices.

"Around our state there are many thousands of responsible participants who treat their greyhounds like family who are involved in the greyhound racing industry either through training, racing or supporting the sport," the spokesman said.

"These people were as dismayed as others by the exposure of completely unacceptable and inhumane practices within greyhound racing.

"That is why they supported the significant reforms made by Greyhound Racing NSW over the last 12 months."

GRNSW said they fully co-operated with the Special Commission of Inquiry who delivered the damning report.

They said they would continue to advocate and support GRNSW members as greyhound racing winds down across the state.

A damning investigation into the sport uncovered reports of systemic animal cruelty, including mass killings and live baiting.

State Premier Mike Baird said the findings of a special commission of inquiry had left the government with "no acceptable course of action except to close the industry down".

The sport would be outlawed by July 1, 2017, Baird said in a statement after releasing the decision t on his Facebook page.

"Greyhound racing has been banned in many countries and many states of the U.S. and is legal in only eight countries around the world. NSW will be the first state in Australia to ban it."

"Over the coming months, we will consult with the industry to help minimise the pain as best we can for the innocent industry participants as we work towards an orderly industry shutdown."

The decision caused shares in betting company Tabcorp to fall by around five percent to A$4.34 ($3.26) on Thursday, though it said in a statement that greyhound racing only accounted for about five percent of their wagering turnover.

The inquiry, led by Australian lawyer Michael McHugh QC, found that up to 68,000 greyhounds bred in the past 12 years had been destroyed because they were considered uncompetitive.

That amounted to about half the greyhound population, the report said.

It also said that evidence suggested up to 20 percent of trainers engaged in the practice of 'live baiting', where animals such as rabbits are chased by dogs during training sessions.

McHugh's report added that "many trainers" did not seek proper or adequate veterinary treatment for injured dogs, instead preferring "cheap and sometimes painful methods of treating greyhound injuries".

It added the industry had turned a blind eye to reports of animal cruelty.

The state government will consult with the industry and animal welfare authorities to implement a shutdown plan over the next 12 months.

"I feel much empathy for innocent trainers and those who will lose their job or hobby as a result of this," Baird said.

"And I understand the disappointment of people who enjoy having a punt on the dogs. But we simply cannot and will not stand by and allow the widespread and systemic mistreatment of animals."

But Victoria has no plans to ban greyhound racing.

Victorian Greens leader Greg Barber has called on Premier Daniel Andrews to shut it down but acting racing minister Jill Hennessy said the industry had taken great strides in reforming.

And on Twitter, Racing Minister Martin Pakula said he was backing Greyhound Racing Victoria to continue the reforms after none of the reports in Victoria recommended the shutdown of greyhound racing in the state.

Meanwhile, the boss of Queensland's biggest greyhound group has condemned the NSW decision as a stitch-up based on half-truths.

Queensland Greyhound Breeders Owners and Trainers Association president Brenton Wilson told AAP he is appalled at the decision, which appears to have no genuine basis.

Wilson said his organisation has been working tirelessly in the past 12 months with the Queensland government and racing officials to solve any problems.

Tasmania Greens have joined their counterparts in Victoria and Queensland and have urged the state government to follow NSW's lead and ban greyhound racing.

Leader of the Tasmanian Greens, Cassy O'Connor, has chaired a parliamentary inquiry into the state's management and monitoring of greyhound racing and congratulated the NSW Liberal administration's move to outlaw the sport by July next year.

O'Connor said the NSW premier had recognised the inherent cruelty in greyhound racing and acted in the best interests of animal welfare and Tasmania should do the same.