The ISPCA says it is "shocked and appalled" by the footage of a sulky race on a public road.
An investigation is underway by gardai after a race was held on the N7 near Citywest in Dublin last weekend.
Video of the incident was shared on social media, showing cars and other vehicles chasing the horses involved in the race.
The ISPCA said that while gardaí have powers to deal with the reckless and dangerous driving and local authorities can seize any horse that is not microchipped, it would have required "significant resources" to deal with the incident shown in the video.
The association is now calling for the Department of Agriculture to work with local authorities to regulate such races.
ISPCA Chief Executive Dr Andrew Kelly said: "Driving young horses and ponies flat out at excessive speed on Ireland’s busy roads, often by children as young as 10 years old, is an accident waiting to happen.
"All it takes is a trip or stumble which can be fatal for horse and sulky driver.
"It is also a risk for other road users and another serious accident or fatality is inevitable."
He called for sulkies to be taken off public roads, and for a system of licensing and registration to be introduced to allow for a safe off-road alternative.
Travellers rights group Pavee Point said the incident was "completely unacceptable and endangers other road users and indeed animals and participants themselves".
The group said: "Pavee Point calls on local authorities to engage with Traveller organisations, horse owner projects and the Gardaí to explore how to bring about a resolution which allows this long-standing tradition to continue in a manner which is safe, legal and regulated."
Sulkie Racing can be carried out in a way which is safe and well regulated as international best practice in other countries demonstrates - where there is a process and space for it to take place. Examples of good practice also exist around Ireland.
— Pavee Point (@PaveePoint) February 20, 2020
Independent TD Mattie McGrath, meanwhile, said such races are cruel on the horses involved.
He suggested that "anything could happen" when the races take place on roads busy with traffic.
He said: "This cruel activity and the dangers that are with it... it's farcical in 2020 that this is allowed.
"It's farcical that the political parties haven't the gumption to deal with it or legislate for it."