Online betting companies Betfair and Sportingbet are launching a High Court challenge to legislation that prevents gambling companies outside New South Wales from advertising in the state.

Sportingbet chief operating officer Michael Sullivan said his company is restricted from advertising in print, radio and television as well as prevented from sponsoring sporting events in New South Wales.

Mr Sullivan said a unanimous High Court decision against the Western Australian government was the catalyst for the legal action.

„If you look at what the decision was in Western Australia in relation to Betfair, we think we’ve got a very good chance,“ he said.

„We are licenced in the Northern Territory and we’re not allowed to advertise in New South Wales, that is a restriction of trade between states and territories, and we believe it to be unconstitutional.“

A spokesman said racing minister Graham West had no comment as the matter is before the court.