Tasmania's horse and dog racing industry made a loss of $1.2 million last financial year despite being bolstered by $36 million in public funds.
The organisation's annual report, tabled in state parliament on Wednesday, details activity for the most recent financial year.
Its $1.2 million deficit included a loss before tax of $1.73 million, which followed a $400,000 profit in 2022/23.
Racefield revenue returns also declined 10 per cent to $21.72 million, down from $24.13 million the previous 12 months.
Prize money costs amounted to $40.4 million across the year and government funding was at $36.2 million.
However, chief executive Andrew Jenkins said the racing industry typically generated close to $200 million in direct spending for participants in the state.
"Participants are the lifeblood of the three codes of racing. For most participants, involvement is part business and part hobby," he said.
"Additionally, there are many supply businesses for whom the racing industry provides the market for which to sell their goods or services.
"These participants drive a chain of activity which leads to the production of a racing product that is consumed by audiences on almost every day of the year."
Tasmanian Greens Animal Rights spokeswoman Cassy O'Connor said the financial loss was a sign of waning public interest in racing.
"Horse and dog racing are loss-making, brutal industries that continues to lose their social licence and public interest," she said.
"People aren't showing up to the races despite Tasracing pumping money into marketing – and why would they?""Tasracing's annual report exposes the many senseless deaths caused by this cruel industry."
Forty-three retired greyhounds were killed last financial year, triple the rate of the previous year, Ms O'Connor said.
Close to 110,400 people attended a race meeting in Tasmania during the reporting period.
This was made up of 14 race clubs holding 212 race meetings with 2810 total races.