Gambling firm Tabcorp says a legal victory by NSW authorities over Betfair and Sportsbet will ensure the viability of Australia’s racing industry.

The High Court on Friday ruled in favour of Racing NSW and Harness Racing NSW in their battle with Betfair and Sportsbet over the fees they charge for racefield information.

Hobart-based Betfair and NT-based Sportsbet took legal action against NSW and its racing authorities over payment of fees set at 1.5 per cent of betting turnover.

The firms argued the fees, levied by the racing authorities under NSW legislation passed in 2006, breached free trade provisions of the Australian Constitution.

Tabcorp said the judgment would allow the racing industry to decide what price to set for its product and give the industry flexibility to determine how that sum is set.

“Australia’s thoroughbred, greyhound and harness racing industries are significant employers and part of the Australian culture,” Tabcorp chief executive David Attenborough said in a statement on Friday.

“It is important that racing is able to charge a fee for its product that allows it to continue to be successful.

“The overwhelming view of the Australian racing industry and those interested in its long-term future is that the NSW race fields regime should be maintained.”