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The WA TAB is expected to be sold within 12 months following the passing of required legislation by the WA Government.

The passing of the TAB (Disposal) Bill 2019 enables the WA Government to begin a competitive sale process with Tabcorp certain to be among a small field of open market bidders.

The WA TAB is the last Government-owned betting agency in Australia. A sale to Tabcorp, the obvious front runner for the WA business, would be the final piece in the complicated jigsaw that has been holding back the development of a national TAB pool.

Tabcorp moved a step closer to a forming a national pool when it acquired Queensland's TAB betting business from Tatts last year.

The WA TAB has been valued at between $400 and $500 million by the WA Government's commercial advisor Investec Australia.

Investec was engaged to develop a TAB sale framework and post-sale operating model that included options for commercial terms and transaction structures that balance the interests of the racing industry and the WA Government.

The WA Department of Treasury has worked with Racing and Wagering Western Australia (RWWA) to analyse the feasibility of a potential TAB sale.

Under the legislation about 35 per cent of proceeds from the sale will be set aside for racing industry infrastructure while 65 per cent will be spent on a new hospital in WA.

Racing will also receive money raised from the 15 per cent "point of consumption" tax paid by wagering operators.

WA Treasurer Ben Wyatt said the government had achieved the right result for the racing industry with the legislation welcomed by RWWA.

The successful bidder will be required to enter into a formal contractual arrangement which the RWWA Board, on behalf of the WA racing industry, must approve. The contract wil guarantee ongoing funding for the WA racing industry.