Queensland's racing industry will get across the board prize money increases and infrastructure improvements after signing a 30-year deal worth $4.5 billion with gambling giant Tatts Group.

The exclusive retail deal was completed after extensive negotiations which continued until the final signatures were put in place at about 6am on Friday.

Racing Queensland (RQ) chairman Kevin Dixon said part of the deal was that RQ would abandon its current Supreme Court case against Tatts Group for alleged unpaid fielding fee payments.

"Both sides will pay their own legal costs which in our case, and I am sure Tatts as well, are minimal," he said.

Dixon said he could not put an exact figure on prize money increases until discussions were held between the three racing codes, gallops, harness and greyhounds.

"We will be meeting as a priority and we should have an answer for you as soon as possible and hopefully within six weeks," he said.

The allocation of money for infrastructure improvements would also be decided as soon as possible after three code discussions.

The Tatts Group, under various names, has held exclusive gambling rights in Queensland for 61 years.

However, the agreement expires on Monday and RQ called for expressions of interest from all gambling groups in Australia.

Tatts Group's successful bid means it will retain the exclusive right to have "bricks and mortar" gambling in Queensland at hotels, clubs, and TAB agencies.

It will have exclusive signage on all racetracks where it operates including the state's two major courses Doomben and Eagle Farm.

The government has also agreed to reduce the tax Tatts pays on sports, fixed odds and totalisator betting.

The deal means an extra $850 million in funding on top of the current $130 million a year the industry receives under existing arrangements with the Tatts Group.

It also includes $97 million for infrastructure improvements across the state and $5 million for country-regional racing costs and marketing.

The Tatts Group has committed to spending an additional $74 million to refurbish its existing retail outlets and its marketing department.

There will also be a $15 million annual product fee which will be indexed and paid directly to the racing industry.

Racing Minister Steve Dickson said when all aspects are taken into account the industry should be $28.3 million a year better off than the current situation.

He said his government had delivered on a promise to revitalise the racing industry which had been in the doldrums for several years.

Treasurer Tim Nicholls said the deal should provide a brighter future for the 30,000 people who work in Queensland's racing industry.

Tatts Group CEO Robbie Cooke said the deal provided a model for all parties to work together for the best result.