The biggest pay cheque in NSW racing history may have to wait a little longer with Betfair considering its options after losing a Federal Court appeal over the payment of rights fees to Racing NSW.The online betting exchange challenged Racing NSW's right to charge a fee of 1.5 per cent of turnover under the Race Fields legislation introduced in September 2008, arguing they should pay a percentage of gross revenue.That case was dismissed in June and again on Tuesday when the Federal Court also or

The biggest pay cheque in NSW racing history may have to wait a little longer with Betfair considering its options after losing a Federal Court appeal over the payment of rights fees to Racing NSW.

The online betting exchange challenged Racing NSW's right to charge a fee of 1.5 per cent of turnover under the Race Fields legislation introduced in September 2008, arguing they should pay a percentage of gross revenue.

That case was dismissed in June and again on Tuesday when the Federal Court also ordered wagering operator Sportsbet to pay millions of dollars in costs after overturning a decision by Justice Perram that the fee was protectionist towards the TAB.

Betfair will now look at other avenues of appeal but Racing NSW chairman Alan Brown was cautiously optimistic about the outcome.

"It was a unanimous result upholding the legislation," Brown said.

"They have 28 days to seek leave to appeal and we will wait and see what happens.

"A decision on whether they are successful in that application would not be likely until early next year."

"But this is an historic day for racing in this state and could be a blueprint for the rest of Australia.

"We wanted certainty and this was the only way to get it.

"Racing NSW has been collecting race field fees for the benefit of all industry participants.

"Those fees will be targeted at upgrading racecourses and facilities in New South Wales, substantially increasing prizemoney and improving the working conditions and wages of the many participants who form the backbone of our great industry."

Racing NSW has collected around $120 million in fees which it has held back pending the outcome of the court process.

Chief executive Peter V'landys said the money would be used to help those at the coalface.

"It's the biggest pay day for the 50,000 NSW participants - they are going to get paid for all the hard work that they do," he said.

"We will look at how we can increase the wage rate of all our participants in the industry, the strappers and stablehands who exist on $30,000 a year.

"They won't be living in poverty any more.

"It is a win for the racing industry - what we've done is taken up the fight on their behalf.

"I take it very seriously that I represent these people.

"At the end of the day these guys were making profits on the back of our industry and didn't want to pay for it."

Andrew Twaits, chief executive of Betfair Australasia, said he was disappointed but not yet defeated.

"It's another disappointing result for us," Twaits said.

"It's a great day for Tabcorp which has been running the case anyway.

"We do think we have a strong claim and the fee is manifestly unfair.

"We have a couple of options. One is to run a fresh case on appeal.

"Another option is to go to the ACCC with some compelling evidence of anti-competitive conduct."

Betfair and Sportsbet have 28 days to seek leave to appeal to the High Court.