Grassroots racing will be the biggest loser if the NSW government does not alter its take-out from gambling revenues.

The $18 million Championships is also under threat from what Racing NSW says is an inequitable funding the state receives compared to other jurisdictions.

The Championships, two Saturdays of premium autumn carnival racing at Randwick, was staged for the first time this year with the assistance of a $10 million grant from the Barry O'Farrell-led government.

This has turned out to be a one-off with the government offering to loan the industry the money, something Racing NSW has rejected out of hand.

Racing NSW chief executive Peter V'landys said the new premier Mike Baird and his government needed to adjust the tax structure to ensure a viable NSW racing industry, particularly in country areas.

"It has to change," V'landys said.

"It is about the future of racing in this state.

"All we have been asking for from day one is an equal playing field.

"The Championships is only one component. The majority of the money would go to country racing."

For every $100 bet on the totalizator, on average $83 is distributed to the punter. The remaining $17 is shared between the state governments, the commonwealth government, racing industry and the totalizator operator (TAB).

The NSW funding model gives the industry $4.70 of every $100 bet with $3.22 going to the government.

In contrast, the Victorian industry receives $7.90 per $100 bet and the government $1.28.

"The NSW thoroughbred racing industry through returns from the TAB is at a competitive disadvantage with other states, especially its strongest competitor, the Victorian thoroughbred racing industry," V'landys said.

"Accordingly, the three codes in Victoria receive $100 million per annum more than NSW in funding, with the Victorian thoroughbred racing industry alone receiving $70 million per annum more than its NSW counterpart."

V'landys said if the same revenue share applied in NSW and Victoria, it would generate an additional $118 million for racing, $85 million of which would go to the thoroughbred industry.

He said Victoria would not be able to hold the Melbourne Cup carnival without its funding and The Championships would be in doubt if the NSW government did not come to the party.