A re-elected Liberal government has promised to invest $5.3 million into the racing industry and increase stakes by 16 per cent over four years.
Under its policy released on Sunday, stakes would increase by 6 per cent in 2020-21.
Racing Minister Jane Howlett said the government had delivered a 19-per-cent increase in stakes over three years to February.
She said this had exceeded the expectations of the government's 2018 election commitment.
Ms Howlett said the government would invest $3 million into infrastructure upgrades at Longford racecourse, the Brighton training centre, and the Devonport Racing Club's equine pool upgrades.
"This investment is on top of the $8 million in the 2020-21 budget to relocate harness and greyhound racing from the Devonport showgrounds to a new facility, following the sale of the property by the Devonport Agricultural and Pastoral Society to a property developer," she said.
Ms Howlett said the government would continue to support thoroughbred and harness breeding programs until 2024-25.
There will be $300,000 for the Thoroughbred Incentive Scheme and $50,000 to harness breeding incentives.
Tasmanian Racing Club chief executive Brendan Blomeley welcomed the increase in stakes as he said that money drove the industry.
"For the Tasmanian thoroughbred racing industry to be competitive and hold our own with comparable thoroughbred racing in other jurisdictions, such as Country Racing Victoria and Racing South Australia, stakes money must be on an even footing," he said.
"Whilst today's announcement is warmly welcomed, to ensure continued success of the Tasmanian thoroughbred racing industry, stakes money must be at the same level as that being offered in comparable jurisdictions."
It is estimated that Tasmania's racing industry generates more than $103 million a year in economic activity within the state.