Punters would benefit from reforms to the racing industry in NSW, Tabcorp's managing director of wagering Robert Nason says.

While many industry leaders were expressing doubts about the raft of changes, Nason said the proposed legislation to reform the wagering commission system was a positive move.

Under the current legislation, the commission takeout is capped at 16 per cent per year but the amount taken out of each bet type can vary at any time as long as the end result is achieved.

The new legislation would ensure a fixed percentage would be taken out of win and place bets and exotic wagers and the punter would be aware of the percentage taken out.

"The punter can decide how to bet and will know the amount of commission being taken out," Nason said.

"It is an incentive for us to develop more exotic products such as a straight six.

"The reforms are similar to those introduced in Victoria from the first of July."

The "quaddie", the winners of four designated races, has been a popular betting type in Victoria for many years but is relatively new to NSW.

It is just the type of bet Nason said must be promoted to help the TAB compete with corporate bookmakers in the Northern Territory and ACT.

"This is the area where totes have an advantage over corporate bookmakers," he said.

"We can offer the punter more variety on their betting options and this is an incentive to develop more exotic products."

Graham West, the NSW minister for Gaming and Racing, said the changes to the commission system would provide additional revenue to the government which would be shared by the racing industry and community sporting organisations.

"it is estimated the initiative will generate additional revenue of up to $5.5 million annually towards community sporting facilities," West said.

"In addition, the decision is estimated to provide extra funds of up to $2.4 million a year to the thoroughbred, harness and greyhound racing industries."

Racing derives its income through the TAB distribution scheme which is also to be reviewed.

In 2005-06, $218 million was distributed to the three racing codes through TAB revenue.