(Updates with eight thoroughbreds with equine flu, NSW horses banned from Melbourne Cup, wagering firm shares fall) By Michael Perry SYDNEY, Aug 30 (Reuters) - Eight thoroughbred horses at Sydney's premier track Royal Randwick were diagnosed with equine flu on Thursday and the track quarantined for two months, virtually ending its multi-million dollar spring racing carnival. All thoroughbred horses in the worst affected state New South Wales (NSW) have been banned from Melbourne's spring carnival, which includes the country's most prestigious race the Melbourne Cup in November, reported local media. "Randwick right now is under lockdown," said trainer Anthony Cummings, whose horse tested positive. Randwick's 700 horses will be quarantined for two months, said NSW state Primary Industries Minister Ian Macdonald. "There is no doubt the confirmed positive results unfortunately will wreak havoc on the Sydney spring racing carnival at Randwick and cause massive problems for the state's multi-billion racing industry," said Macdonald. 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. NSW racing has been stopped indefinitely, but officials hope some racing may resume at provincial tracks next week. Racing has been cancelled in Queensland until next week, although other states hope to resume racing at the weekend. 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 <TAH.AX> an estimated A$100 million ($82 million). Tabcorp shares fell more than 4 percent on Thursday. 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 480 horses have been diagnosed with equine flu, most of them recreational animals. 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. Racing was cancelled in Japan for the first time in more than 35 years after almost 100 horses tested positive. JOB LOSSES Australia's first equine flu outbreak has forced a national ban on horse movements until Friday. The outbreak has occurred on the eve of the country's thoroughbred breeding season, when some of the world's top stallions arrive from the northern hemisphere. About 40 international stallions have been quarantined in Australia and the New Zealand government has closed its borders to horses from Australia, including dozens of top American, European and Asian stallions worth an estimated $500 million. Racing NSW Chief Executive Peter V'Landys said scores of people involved in the racing industry, from track riders to transport workers, had been laid off. "This is a major crisis. People have woken up this morning and their jobs have gone. I know a single mother who does track work to supplement her income who can't even pay her rent," he said. Australia's national government announced on Thursday a A$4 million fund to provide emergency funds to people suffering financial difficulty due to equine flu. Agriculture Minister Peter McGauran said NSW would receive A$2.5 million and Queensland would receive A$1.5 million to distribute to individuals involved in the racing industry.
