The Bill is considered by racing sector leaders to be vital to the survival of the industry as it is designed to boost industry coffers by taxing overseas bookmakers who take bets on New Zealand racing and sporting events. It had its first reading in the House on Tuesday night.
After Racing Minister David Bennett introduced the Bill and nominated the primary production committee as the select committee to consider it, it passed its first reading 105-12.
Among National MPs supporting the Bill was Barclay, who used the opportunity to sign off from Parliament.
''It is actually a privilege to speak on this Bill, and it will be the last contribution that I make in the House as well, as a member of Parliament,'' he said.
''How fitting, given that the racing industry plays such a huge role in my history and in my upbringing. My grandfather, Keith Barclay, trained and drove racehorses in Gore, and my uncle, Brent Barclay, still trains and drives racehorses just out of Winton.''
Todd Barclay will not seek re-election at the next election following allegations he secretly recorded a staff member at his electorate office.
During his speech he supported minister Bennett who had spoken of the important changes to capture more revenue from overseas betting agencies.
''Offshore betting operators will be required to seek the department's permission and enter an agreement to use New Zealand racing and sports information,'' Bennett said.
''The Bill establishes that these agreements will be enforceable under New Zealand law.''
Rangitikei's National MP Ian McKelvie spoke of the importance of New Zealand-bred horses being sold overseas.
''The other interesting thing about breeding horses is that it has a much lesser environmental impact on both land and the environment than many other forms of farming,'' he said.
Labour racing spokesman Kris Faafoi was critical of the time it took the Government to introduce the legislation to Parliament.
''If the Government had done its job properly, it should have been passed by now, giving the racing industry and the sporting codes the ability to be able to get the revenue that this legislation promises to be able to get,'' he said.
He was critical of the time it took to act on a working group report that was delivered in 2015.
NZ First MP Clayton Mitchell said the wait for the introduction of the legislation had contributed to the racing industry being at crisis point.
''I have to say that this industry is in crisis. This industry has been in crisis for nine years,'' he said.
Breeders at the yearling sales at Karaka earlier this year had told him they were not being heard, ''and they feel like there is no solution coming forth''.
Mitchell said previous racing ministers in John Carter, Craig Foss and Nathan Guy had all failed to act, effectively delivering new minister David Bennett a hospital pass on getting the legislation through.
The House is due to rise today.
Green Party spokesman Barry Coates was concerned about the impact the Bill could have on problem gamblers, particularly because it allowed live betting on racing and sports.
''Studies have shown that live betting can generate substantially higher forms of problem gambling compared with pre-race betting,'' he said.
