The Greyhound Racing NSW board and chief executive Brent Hogan agreed to stand down on Wednesday night in the wake of the live baiting scandal engulfing the sport.
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Deputy Premier and Racing Minister Troy Grant spoke with each of the board members personally before the decision was made.
The move came after Monday's Four Corners expose on the dark side of the sport. The program featured piglets, possums and rabbits being used as live bait to blood greyhounds.
While there was footage from Queensland and Victoria, there were disturbing practices shown on NSW properties.
The board was chaired by corporate lawyer Eve McGregor and included David Clarkson, George Bawtree, Megan Lavender and Peter Davis, a Fairfax Media employee.
It is believed the Racing Minister started to make the calls just after 7pm and told board members he was acting on instructions from Premier Mike Baird. He told them it was no reflection on them personally, but it was a decision that had to be made given the magnitude of the evidence.
The fallout to the crisis continued earlier on Wednesday with trainers Majella Ferguson and David Sundstrom stood down after being connected to live baiting at Zeke Kadir's Londonderry property.
Londonderry trainer Bruce Carr was also stood down after four live rabbits were found during an inspection of his property by GRNSW and the RSPCA NSW last Friday.
In a statement released on Thursday morning, Mr Grant said the board members would refer their powers to an interim CEO, Paul Newson, who is the head of the NSW Office of Liquor, Gaming and Racing.
"The Government takes the issue of animal welfare very seriously," Mr Grant said.
"It is clear self-regulation under the current structure and culture within greyhounds has failed.
"The Government is committed to ensuring anyone caught blooding their dogs will be kicked out of the sport for life and we will restore the integrity of the industry."
The deputy premier also announced the expansion and strengthening of the McHugh Review into greyhound racing.
Mr Grant said he wanted to see the "abhorrent" practice of live baiting "stamped out for good".
"During this time I do not want to tar everyone with the same brush, there are many people working in the industry who are similarly appalled at what has been uncovered," he said.
He also thanked the board for its contribution to the industry, saying their stepping down was "not a personal reflection"on them.
"The actions being taken reflect the government's belief that now is the appropriate time to shine a light through the entire industry," he said.
