The money will be distributed over three years to lift race stakes, improve old infrastructure and encourage young people into the industry.
The initiative has come directly from industry feedback, chief executive John Allan said.
``Last year, I undertook a series of conversations around the country speaking to those at the coal face of the New Zealand racing industry and hearing their concerns.''
``I received a very clear message that this is an industry under significant pressure; many people are struggling and the industry requires increased financial support now.''
A stakes enhancement fund of $2.8million will go directly towards race stakes.
A sum of $650,000 has been earmarked for a youth development fund to develop career paths for young people to enter the industry.
An infrastructure enhancement fund of $1.29million will be targeted at improving older facilities at racecourses to improve safety, reliability and the experience of patrons.
``The allocation of funding will be made in collaboration with all three racing codes to ensure they are in line with their individual strategic planning,'' Allen said.
The initiatives will be funded by non-casino gaming proceeds and will not impact on NZRB's existing model of distributing betting profit to the racing industry.
the Otago Racing Club chief executive, Hannah Catchpole, said the club welcomed the news that additional cash was being put into racing.
``My hope is that it [stakes enhancement funding] is directed to the lower-level stakes races and not raising high-end stakes races.
``In the Otago region we have a large number of race meetings funded with $7000 and $8000 stakes levels.''
``With the costs of training a horse only increasing it is getting harder to keep people in the industry that we cannot afford to lose. It also makes it hard to encourage people to join the industry.''
The Otago Racing Club intended to make an application for funds for the continued improvement of their on-course buildings, Catchpole said.
Forbury Park Trotting Club general manager Rodney Moore said the announcement was good news.
``What's really positive is that it is targeted at strategic initiatives''
Maintaining infrastructure, stake levels and attracting local youth were three of Forbury Park's biggest challenges, Moore said. The club would await with interest announcements from Harness Racing New Zealand on how the funds would be distributed, he said.
- Jonny Turner
