As the West Australian government weighs up the future of greyhound racing, former Business Council of Australia economist Stephen Walters has found the sport costs the state more than it returns.
The state government is set to spend $108.3 million in taxpayer funds over the next three years on greyhound racing prize money, payments to dog breeders, and other costs associated with the industry, according to his report, compiled for welfare group Animals Australia.
But for every dollar spent, 21 cents of economic value is lost through gambling harms, poor animal welfare, inefficient land use at training facilities and race tracks, and the diversion of taxpayer funds to the sport instead of places like schools and hospitals, the cost-benefit analysis found.
"Greyhound racing destroys economic value in Western Australia," Mr Walters said.
A parliamentary inquiry into WA's greyhound racing industry, which gets under way on Monday, will examine transparency and animal welfare concerns as the government faces pressure to ban the sport.
Tasmania's parliament in August voted to phase out greyhound racing by 2029, while New Zealand, Wales and Scotland also plan to outlaw the practice in coming years.
Mr Walters acknowledged the industry helped generate revenue and employed people at racetracks and in ancillary jobs such as transport and vet services, but argued these benefits were "swamped" by costs in WA.
Wagering is the largest single cost associated with WA's greyhound racing industry due to the long-term cost of family breakdown, deterioration in mental health, loss of income and government funding needed to alleviate the impacts of gambling, the report found.
It has already cost the state $110.5 million in 2026.
But should WA follow in Tasmania's footsteps and close the industry by 2029, the societal costs of gambling would only decline by five per cent as 95 per cent of the wagering undertaken in greyhound racing would likely to be diverted to other gambling activities rather than non-wagering purposes.
The costs of poor welfare outcomes for dogs such as death and over-breeding were relatively small, and while the broader social costs of the issue were believed to be significantly higher, they were difficult to rigorously quantify, Mr Walters acknowledged.
The greyhound industry is already facing declining attendance as a 2025 DemosAU survey shows most WA respondents do not support the sport.
"It is not clear the greyhound racing code would survive independently without substantial funding from taxpayers," Mr Walters' report read.
WA's Labor government is launching a review into the state's racing industry to ensure a framework for long-term financial stability, noting it employs thousands of workers and contributes $1.3 billion to the WA economy every year.
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