After a debilitating three month shutdown because of equine flu, racing resumes in Sydney and Brisbane tomorrow. But the uncertainty about the industry’s future remains.

It will take weeks, if not months, to fully assess the long term impact of equine flu on the industry in New South Wales and Queensland. But the early signs are that betting – which underpins the industry’s finances – will struggle to return to its pre-flu levels.

Racing prize money is funded by a share of TAB turnover, and the turnover decline over the last three months runs into tens of millions. The profits of TABCORP and UNITAB will take a real hit. When that is taken into account next year the pressure on prize money levels will be greater than ever.

The race clubs have incurred massive losses over the last three months as well. The industry’s best hope is that it may be able to seek compensation when the Callinan Report into how equine flu entered Australia is presented next year – the evidence so far is wholly unfavourable to the quarantine service.

But an even greater concern for the industry is whether regular punters, and racegoers, who have found other interests – especially betting interests – return to punting on horse racing in the coming weeks.

In the last three months there has been a surge in sports betting – from which the racing industry gains no financial benefit.

But the industry is hardly helping itself. It remains as divided and as inwardly focussed as ever.

This week, the members of the Brisbane Turf Club voted down a proposed merger with the neighbouring Queensland Turf Club, putting the future of the BTC under a cloud. In NSW, the industry is about to get a new government-imposed controlling body but it will struggle to unite a hopelessly divided industry.

And the biggest challenge of all – that from betting agencies such as Betfair – is gathering pace. And the one united mainland state’s opposition to Betfair is clearly unfolding.

The NSW Government has ordered an inquiry into the possible licensing of betting agencies and Victoria is reviewing forms of betting as well. Betfair has challenged in the High Court the WA Government decision to ban West Australians betting with Betfair and other agencies – and the indications are that the ban will be declared unconstitutional (under the free trade between the states provision) next year.