The move comes after a special commission of inquiry found overwhelming evidence of systemic animal cruelty, including mass greyhound killings and live baiting.

There will be a transition plan for a gradual winding down of the industry as of July 1, 2017.

Racing will not be permitted in NSW after that date.

The greyhound industry directly employs more than 1000 people, including tracks at Dapto, Bulli and Nowra.

The announcement was made as Mr Baird handed down the report of the Special Commission of Inquiry into the Greyhound Racing Industry in NSW.

The report found between 48,000 and 68,000 greyhounds – or at least half of all greyhounds bred to race – were killed in the past 12 years because they were deemed uncompetitive.

Inquiry Commissioner Michael McHugh’s report recommended Parliament  “should consider whether the industry has lost its social licence and should no longer be permitted to operate in NSW”.

“As a humane and responsible Government, we are left with no acceptable course of action except to close this industry down,” Mr Baird said.

“This is the inevitable conclusion to be drawn from the appalling revelations in Mr McHugh’s report and his considered view that any other measures are unlikely to protect animals from further cruelty.”

The transition plan will feature a welfare plan for existing greyhounds, including opportunities for re-homing and an “adjustment package for industry participants”.

The government also said it would ensure greyhound race tracks are used for “open space, alternative sporting facilities or other community use”.

While NSW is the first state in Australia to ban greyhound racing, there are at least 40 states in the America – including California, Nevada and Virginia – where it is outlawed.