Australia's equine flu outbreak spread to the thoroughbred industry when a horse tested positive at Sydney's Randwick racetrack.
More than 700 horses were confined to stables today, and all racing in Australia has been cancelled since equine flu was detected last week. Officials have been trying to prevent the disease spreading to the thoroughbred industry.
Australia's spring carnival is the industry's most lucrative period, with Randwick in New South Wales one of the main venues and home to some of Australia's best horses and trainers.
The racing shutdown is costing the industry tens of millions of dollars each day, with officials warning a week of no racing will cost the country's biggest wagering firm Tabcorp an estimated 100 million Australian dollars (€60 million).
Racing NSW Chief Executive Peter V'Landys said he did not expect Randwick to stage spring carnival races, while other racetracks in Sydney could be restricted to "phantom" race meetings where horses race but the public is barred from tracks.
The highly contagious disease is not infectious to humans but has the same debilitating effect on horses as influenza has on people, causing high fevers, coughing, sneezing and lack of appetite. In rare cases, it can be fatal to horses.
More than 90 horses have been diagnosed with equine flu and hundreds more horses are suspected of being infected.
Australia has some of the toughest quarantine rules in the world and officials suspect equine flu might have come from Japan, which has just been hit by a large outbreak.