The state government announcement on Monday comes after the ABC aired the accusations at the weekend.
They alleged unusual race results and betting patterns in some races with a heavy presence from one local trainer.
Minister for Racing Madeleine Ogilvie said an independent expert would be appointed to head the review and a terms of reference would be developed.
She had on Sunday ordered the Office of Racing Integrity to review the allegations, but conceded an independent review was now needed.
The state's Labor opposition and the Greens have called on Ms Ogilvie to resign.
"(On Sunday) Ms Ogilvie announced (the Office of Racing Integrity) would review its own performance. It was so completely incompetent it was difficult to believe," Labor MP Dean Winter said.
Ms Ogilvie had earlier ordered the Department of Natural Resources and Environment to immediately review information included in the allegations.
She said in relation to the allegations, Tasracing has proposed a rule to limit the number of horses from any one stable competing in predetermined races.
She also said the Office of Racing Integrity would employ a betting analyst to assist across all three codes of racing.
They will provide access to information to help stewards in their inquiries and provide the opportunity to proactively review betting trends, she said.
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