RSPCA Tasmania's chief says she was "overwhelmed with joy and hope" on hearing the premier's announcement this weekend that greyhound racing will be phased out in the state.
Dogs' Homes of Tasmania has also backed the move, calling it a "monumental step for greyhound welfare".
Speaking on Sunday, Premier Jeremy Rockliff pledged to wind up greyhound racing in the state by June 30, 2029, after citing concerns "about the welfare of participants and greyhounds".
The timing coincides with the end of the current funding deal for the greyhound code, which concludes in 2029.
The move comes as Mr Rockliff's recently recommissioned Liberal government attempts to secure the support of crossbenchers, after failing to win a majority at the recent state election.
The Liberals have 14 seats and Labor 10, and both need backing from the crossbench to make up the 18 required to form government.
RSPCA chief Andrea Dawkins said that, regardless of motivation, the commitment reflects what advocates had been "looking for and asking for, for many years".
Ms Dawkins acknowledged a growing chorus for change reflected by bans already in place in the ACT and New Zealand.
Ms Dawkins said hundreds of dogs would need rehoming each year of the transition phase, and organisations taking on the task would need funding to do that.
"We know that Tasmania has the capacity to rehome every dog in the industry," she said.
"It's going to take a collective community approach to ensure that every single dog is safely rehoused."
Greyhound industry costly and in decline
An independent report earlier this year found government funding for greyhound racing was rising year-on-year faster than the state's annual spend on education, but returns were "diminishing".
The state's racing industry has been mired in controversy in recent years, facing criticisms over transparency and animal welfare.
"The reality is the greyhound industry is at the crossroads, is in decline and it is increasingly clear it does not align with community expectations," Mr Rockliff said on Sunday.
Tasracing, which manages the state's three racing codes, is backed by a 20-year funding deed it signed with the government in 2009.
At the time it was worth $27 million per year, indexed for inflation.
The state government funds three racing codes — greyhound racing, thoroughbred horseracing and harness racing.
Following the latest commitment, the funding portion for greyhound racing will not be renewed once it expires in 2029.
Industry reacts to announcement
Hobart Greyhound Racing Club chair, Stephen Lockley, said the decision to wind up the sport had hit the industry hard.
"Having been involved in the greyhound industry for 51 years, I am devastated by yesterday's news," Mr Lockley said.
In a statement, industry body Tasracing acknowledged the announcement.
"We will engage with all industry code stakeholders and other stakeholders about the decision," it said.
Throwing her support behind the initiative, Racing Minister Jane Howlett said she was "deeply committed to ensuring those in the greyhound industry, their families and their communities are supported through this transition".
Ms Dawkins said the RSPCA wanted a "just transition" for racing industry participants.
"For the industry participants that we have worked with, they have been people who have been wonderful to work with," she said.
"The long lead-in time is entirely appropriate, and we thank them for their willingness to work with us, while we join many, many other jurisdictions in the world in stopping using dogs as a gambling product."
Labor criticises 'bid to cling on to power'
Labor leader Dean Winter said greyhound racing employed about 650 Tasmanians.
He said people who relied on the industry were "waking up this morning to see their livelihoods being traded off by Jeremy Rockliff".
"Any decisions of this magnitude need to be taken carefully, following due process, and not as part of a political bid to cling on to power," he said.
"The Liberals' track record shows they cannot be trusted or taken seriously when it comes to racing and animal welfare."
Mr Winter has confirmed a no-confidence motion will be moved in Mr Rockliff's minority Liberal government once parliament resumes on August 19.
It is not known whether Labor would reverse the current decision if they were to form a minority government.
A parliamentary committee will oversee the transition, with advice and support from Racing Integrity Commissioner Sean Carroll.