Opposition politicians had been calling for an inquiry since the allegation surfaced last Thursday - the latest Labor gaffe that could threaten Betfair's chances of Upper House approval.
Premier Paul Lennon had already admitted he and Mr Cox accepted Melbourne Cup hospitality from the Packer family's Publishing and Broadcasting Limited (PBL) just two days before announcing Tasmania's intention to licence the company's joint venture with the UK-based Betfair.
The revelations outraged opposition politicians but did not prevent Betfair's smooth sailing through Tasmania's Labor-dominated Lower House.
17 November 2005
Police rule out Betfair probe
The Age reports: "Police will not investigate claims Tasmanian Racing Minister Jim Cox offered jockeys money for their support of Betfair."