Under the new agreement, racing will receive $27 million annually for the next 20 years.
It covers all forms of racing from horse to greyhound racing.
The deal will also see the Government give $40 million to the industry for capital works if it sells TOTE Tasmania.
The Chief Executive of the Tasmanian Racing Board, Gary Lottering, says it’s a good deal.
“You won’t find many racing jurisdictions around Australia that are actually getting funding for that period of time, 20 years is a long time, it’s a substantial amount of money, it provides the industry with a base to really move forward and provides them with some sureties about their future,” he said.