The NSW racing industry is poised to win its battle for wagering tax parity with Victoria.

Minister for Racing Troy Grant introduced legislation into state parliament on Wednesday to reduce the amount of tax the NSW government takes from TAB wagering revenue.

Racing NSW has been campaigning for a reduction in the state government's wagering tax rate to put the NSW industry on an equal footing with Victoria.

Under the existing arrangement, the NSW government takes $3.22 from every $100 bet on the TAB compared to the $1.28 taken by the Victorian government.

The new legislation will bring NSW racing into line with the Victorian model.

The reductions, to be phased in over five years, would give the NSW racing industry certainty over its future revenue streams, said Racing NSW chairman John Messara in a statement.