NSW's controversial greyhound racing backflip will cost the state $41 million as the government pumps taxpayers' funds in to reform the industry.
The funding will be used to improve animal welfare standards and create a new integrity commission to oversee the industry.
Animal advocate groups have criticised the Berejiklian government for using taxpayers' money to clean up the sport and it remains unclear how the industry will pay for the reforms once funding runs out.
"This amount of public funds should not be allocated to an industry exposed for mass dog killings, fatal injuries, live baiting and doping with dangerous drugs," Humane Society International Australia said in a statement on Tuesday.
The government says it will adopt all but one of the 122 recommendations of the Greyhound Industry Reform Panel which was set up after then-premier Mike Baird sensationally backed down on his ban on the sport in October.
An independent integrity commission, separate from the sport's commercial operations, will be created and there'll be stricter controls on euthanasia and tougher penalties, including life bans, for live baiting.
Racing Minister Paul Toole says the government will contribute $30 million over five years to implement the reforms with an additional $11 million set aside for the new welfare body.
"This (funding) will be phased out by the fifth year when the industry will need to stand on its own and be sustainable," Mr Toole said in Sydney.
NSW Greyhound Industry Racing Alliance chief executive Brenton Scott is disappointed the government hasn't agreed to grant the industry a greater share of TAB's betting revenues.
"We ask for no more than to be able to stand on our own two feet ... we will continue to press for a fair funding outcome," he said.
Fellow panel member Steve Coleman from the RSPCA is "pleased with the announcement" but argues the integrity body can only be effective if it's properly resourced and has industry support.
The panel's chair, former Labor premier Morris Iemma, said the industry would have to continue with animal welfare at the centre of its operations.
"When the laws go through parliament, NSW can hand on heart say they lead the way in greyhound racing," he said during Tuesday's joint press conference.
The one recommendation not being taken up by the government was relatively minor and would not impact on breeders, trainers or animals in any way, he said.
The government was again criticised for backflipping on its ban after Tuesday's announcement.
Greens MLC Mehreen Faruqi said the funding was "blood money".
Ben Pearson from the World Animal Protection group stated: "The people of NSW shouldn't have to fork out millions to clean up the cruelty the greyhound industry has created."
Mr Baird announced the ban in July 2016 after a special commission of inquiry found there was overwhelming evidence of systemic animal cruelty in the sport, including mass greyhound killings.
The ban was scrapped three months later following an industry-led backlash.