NSW bookmakers will reluctantly support the Racing NSW race fields legislation for the good of the racing industry despite fears that many will be forced out of business within 12 months.

The NSW Bookmakers Co-operative met on Friday to discuss the implications of the Federal Court ruling that requires all bookmakers in Australia to pay 1.5 percent of their turnover to Racing NSW if they operate on NSW race meetings.

There are some 200 bookmakers in NSW but less than 30 attended Friday's meeting, a day after the 1.5 percent fee on all bets came into force.

NSW Bookmakers fear the removal of the $5 million tax free threshold that applied before the Federal Court judgement ruled it to be unfair to a minority of the interstate corporate bookmakers who are fighting the legislation will force many out of business.

The meeting considered a boycott of NSW race meetings to highlight their financial plight.

The boycott proposal was deferred with the Co-Operative resolving to work with Racing NSW to find ways of easing the increased costs NSW bookmakers are facing to remain viable.

"The strong consensus from our meeting was that a rate of 1.5 per cent on turnover is opposed on the basis that members' businesses cannot sustain an impost of that magnitude," said chairman Mick Rolfe.

"The court decision has effectively quadrupled fees payable by the majority of our members, providing a huge additional burden on the smaller operators.

“However we understand the Racing NSW position and the need for all wagering operators to pay a fee for the use of NSW race fields and support the legislation in principle.”

The majority of bookmakers feel the fee should be set at one percent and that stand fees collected by race clubs from on course bookmakers on race days be abolished.

Sydney bookmakers received some good news from the Sydney Turf Club with its decision to drop its 0.33 per cent stand levy from today's meeting at Rosehill.

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