The annual event has been running since 1946 and has been cancelled only twice before: once for bad weather and once during the Covid pandemic.
The Hāwea Picnic Racing Club social media pages announced the cancellation on Monday.
Club president Paul Cunningham said the event would be assessed in August next year and he hoped it would return in December 2025.
The races are fully organised by volunteers and always held on December 28.
The day usually attracts at least 1500 visitors and in the past has hosted seven races, plus a full schedule of other family entertainment.
However, with dwindling entries last year, just five races were held.
"We sent invites to all our contacts and got zero replies. Numbers of entries have been dwindling for a few years.
"This year, we just can’t carry on. Last year, we had two races with two horses. That was just plain embarrassing," Mr Cunningham said.
Mr Cunningham said it had been suggested to him that the lack of commitment was a sign of the times, but he understood the Cromwell gallops last week attracted a reasonable number of people.
He did not go because he was at the cricket, he said.
Financially, the club was "fine".
"It is just that two-horse races are not good enough ... if we had a full commitment in the others, we could tolerate one," he said.
