Forget the credit markets – what really has Australians in a tizzy is the possibility that their beloved Melbourne Cup, one of the world’s most lucrative horseracing events, may be scuppered by an outbreak of equine flu. Fears, and financial reverberations, are mounting alongside the toll of sick horses. On Thursday, eight thoroughbreds at Sydney’s premier Royal Randwick track tested positive, placing a further 700 – and the track itself – under quarantine. Pain has spread to the stock market, where shares in betting groups Tattersall’s and Tabcorp are being marked down. By its own reckoning, racing bans cost Tabcorp A$150m in wagering turnover at the weekend and trimmed A$5m off profits. In Japan, where equine flu stopped weekend races earlier this month, revenues fell by US$400m.

For now, the Australian industry’s best hope is that the state of Victoria, home to the Melbourne Cup, stays clean. Thursday’s news means the comparable New South Wales’ Spring Carnival is history. But if the Victoria races go ahead, shops across the nation can still take in bets. Wagering companies are also keeping the machine ticking over by running television coverage of South African and New Zealand races.