Rules to protect dogs have never been implemented and may not be for another 18 months despite a scathing review into greyhound racing.
The final report of the Drake inquiry into the troubled industry - sparked by concerns from a departing vet - found not a single track in NSW was compliant with minimum standards set in 2020, including many which have been completely rebuilt in that time.
Greyhound Racing NSW had "never directed clubs to comply" with the standards or made compliance a condition of registration or race date allocation, acting industry regulator Lea Drake said.
Ms Drake also demanded the number of operating tracks be reduced and curved tracks be phased out.
Despite Ms Drake recommending the entire industry be shut down within weeks if new standards were not set and publicised, the racing minister will give greyhound officials until June 30.
Racecourses have to meet the minimum standards by June 2027.
"We will make a decision in 12 months time about how many tracks are meeting those standards," Racing Minister David Harris told reporters when asked whether he would commit to enforcing an industry suspension.
The new head of Greyhound Racing NSW, who headed the dog racing safety regulator when the review was launched, backed Labor's decision to not adopt all recommendations.
"It's quite clear (the NSW government is) going to work with us in relation to minimum track standards," Steve Griffin told AAP.
"Where the report itself doesn't have a complete understanding of the true nature of the situation ... the government has decided that it won't be implementing those (recommendations)."
The lack of a chief veterinarian for the industry was another alarming finding made in the damning review, with Ms Drake saying filling the position should be a condition of the industry's licence.
The report was released on Tuesday, more than four months after being handed to the Labor government.
It coincided with the announcement of the closure of one of the state's oldest and most iconic tracks for new housing and green space.
The NSW government also announced on Tuesday it wants to bulldoze longstanding greyhound racecourse Wentworth Park and build some 7300 homes across a 14-hectare precinct in central Sydney.
The lease for the Crown land parcel is due to expire in 2027 and will be transferred from Greyhound Racing NSW to the City of Sydney, converting the track into 20 community sports fields.
Australia's most populous state needs to build 377,000 homes to deliver its share of an ambitious national target of 1.2 million dwellings by 2029.
