The annual event has been running since 1946 and has only been cancelled on two other occasions: once for bad weather and once during the Covid-19 pandemic.
The Hawea Picnic Racing Club social media pages announced the cancellation on Monday.
Hawea Picnic Racing Club president Paul Cunningham said the event would be assessed in August next year and he hoped it would return in December 2025.
The event is fully organised by volunteers and is always held on December 28.
It usually attracts at least 1500 visitors and in the past has hosted seven races, plus a full schedule of other family entertainment.
Mr Cunningham said there was never a problem drawing a crowd to watch, but the entries were just not coming in.
"We sent invites to all our contacts and got zero replies. Numbers of entries have been dwindling for a few years. This year, we just can’t carry on. Last year, we had two races with two horses. That was just plain embarrassing," he said.
Mr Cunningham said it had been suggested to him that the lack of commitment was a sign of the times, but he understood Cromwell Race Day last week attracted a reasonable number of people.
He did not go because he was at the cricket, he said.
Financially, the club was "fine".
"It is just that two horse races are not good enough ... "
