The NSW government will extend Tabcorp’s exclusive retail wagering licence until 2033.

Racing Minister George Souris on Thursday announced the state government had reached an in-principle agreement with the off-course betting giant to extend its exclusivity period for another 20 years.

Tabcorp will fork out $75 million to extend TAB’s licence as the sole provider of totalisator and fixed-odds betting in retail environments, including club and pub outlets.

The payment is made up of an initial $50 million, with the balance to be paid over 10 years from 2024.

Mr Souris said the state government was committed to supporting the viability of the racing industry, which provides significant social and economic contributions.

“This agreement will provide both continuity and certainty on behalf of the industry,” he said in a statement.

The NSW TAB, a wholly owned subsidiary of Tabcorp, holds a 99-year licence issued in March 1998 to conduct totalisator betting in NSW.

NSW race clubs also hold 99-year licences for the conduct of ‘on-course’ totalisator betting on racecourses with the TAB undertaking this by agreement on behalf of the race clubs.

These licences included a 15-year ‘exclusivity period’ which will expire on 22 June 2013, Mr Souris said.

The agreement comes two years after the Victorian government renewed Tabcorp’s exclusive arrangements until 2023.

Tabcorp chief executive David Attenborough hailed the agreement as “a great outcome for TAB, but it is also the right outcome for the NSW racing industry”.

The existing funding model had returned $238.6 million to NSW’s thoroughbred, harness and greyhound racing industries in fiscal 2012, he added in the statement.

TAB gambling products are offered at 2,130 hotels and clubs in NSW.

Tabcorp shares were down one cent, or 0.31 per cent, to $3.23 at 1155 AEST.