With an appeal against a landmark, Federal Court ruling expected in the next week, the two-year legal fight between Racing NSW and online betting exchange Betfair would go to the High Court.

Betfair intends to appeal the Federal Court’s ruling to allow New South Wales racing administrators to charge a turnover-based fee called a ”race fields fee”. Last week, the right of Racing NSW to charge a 1.5 per cent levy on turnover was upheld by three Federal Court judges. Appeals from Betfair and Sportsbet were also quashed by the court.

To pursue further legal action, Betfair is believed to have the support of Mr. Packer. The company believes to lodge a formal complaint with the Australian Competition and Consumer Commission. For the company, it is an anti-competitive conduct.

Company directors agreed to appeal the decision to the High Court, at a Betfair board meeting in Melbourne on Monday. The company’s plan for an appeal was the first item of business. Last week’s court ruling was hailed by Racing NSW as a victory for the racing industry. In case Betfair and Sportsbet won in court, the governing body said it would release $120 million of revenue paid by corporate bookmakers that it had held back and announced an increase in prize money for races.

With the ACCC, Betfair plans to lodge a formal complaint over what it claims is a conspiracy to protect the TAB’s revenue through an uneven race fields fee structure.

Mr. Twaites said, ”Our gripe is that we are being asked to pay a fee that is six times higher than the TAB is paying. Racing NSW is charging the TAB 9 per cent of their gross revenues, and they are charging us 60 per cent. This is about a low-margin business challenging the monopoly of a high-margin business, and we intend to keep fighting.”

Justice Nye Perram concluded in his original ruling, ”the respondents [Racing NSW] plainly intended the fee to protect the TAB from competition from Betfair and that their intentions were protectionist”.

He added that Racing NSW’s ”actual purpose was to protect the revenues of the TAB from competition from interstate operators”.