Anyone found guilty of match fixing or corrupt betting could spend up to 10 years in jail under new laws to be introduced by the NSW government.
Gaming minister Graham Annesley says NSW will be the first state in Australia to introduce the tough new penalties.
"There is no bigger threat to the integrity of sport than match-fixing," Annesley said in a statement.
"Sport is big business these days and it would be naive of any government to think sport is immune to corrupt conduct."
NSW Hospitality and Racing Minister George Souris said the reforms were necessary if punters were to have any confidence in the sports and racing betting market.
"The NSW government and the racing industry are absolutely committed to making certain the reputation of sport and racing in this state remains intact," he said in a statement.
The proposed laws follow a Law Reform Commission report written in response to a betting scandal involving a 2010 rugby league match between Canterbury and north Queensland.
The report was tabled last year.
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