Tabcorp has released figures of the total bets it has processed up to 11am (AEDT), with spokeswoman Elise Sullivan saying the amount is about eight percent up on last year.
Victorian punters have wagered $21.17 million on Melbourne Cup day races so far, with $13.09 million on the Cup itself.
In New South Wales the total stood at $16.85 million across all races, with $14.28 million on the Cup.
Tabcorp also announced there had been a change in favouritism for the Emirates Melbourne Cup fixed odds betting.
Spokesman Gary Davies said punters had shied away from Tawqeet after his hoof-related injury scare.
"This morning Tawqeet was favourite at $5 .... but we did have a punter that had $60,000 on Yeats at $5.50, so that certainly caused a change in the betting," he said.
"Yeats is now a clear favourite in the (fixed-odds) betting on $5 and Tawqeet is on $6, so it has been a turnaround."
Last year, Victorian punters alone bet $70.8 million on Melbourne Cup day races at Flemington, up from $66.5 million in 2004 and $63.3 million in 2003.
Flemington crowd builds
A huge crowd of more than 110,000 is expected at Flemington racecourse for the race, despite forecasts of rain.
However the Bureau of Meteorology's says the rain should clear well before the big race at 3pm (AEDT).
No rain has been recorded at the racecourse since Thursday and the track has been declared as "dead".
The Melbourne Cup crowd record of 122,736 was set in 2003 and
Victoria Racing Club (VRC) spokesman Stephen Silk expects another bumper crowd today.
"We're expecting between 100,000 and 110,000," Mr Silk said.
The Flemington racecourse can hold 135,000.
Trackside feast
Whatever the number, there will be food and drink to spare, with
800kg of smoked salmon ordered, along with two tonnes of beef,
50,000 sandwiches and 40,000 party pies.
Punters will wash this down with 165,000 cans of beer, 50,000 bottles of Fleur de Lys sparkling wine and 1,000 bottles of Moet champagne in the members' area.