Someone might be able to confirm this, but from my understanding the Racing Industry receives a lesser distribution from Luxbet's profits than it does from pari mutuel betting conducted by Tabcorp.
If that is so, Luxbet is cannibalising into the pari mutuel arm of Tabcorp and eroding the Racing Industry's distribution.
Tabcorp might answer that argument saying that they are eating into other corporate bookies turnover and the Racing Industry is, albeit at a lower rate, still benefiting at the expense of corporate bookies, however if Luxbet's contribution to the Racing Industry is no different to any other corporate bookie that argument has less validity.