Gai Waterhouse and Adrian Bott have lost their appeal on a misconduct charge for substituting horses in a televised trackwork session.

The Racing NSW Appeal Panel on Friday dismissed the training team's appeal against conviction and a $5000 fine.

After determining three horses were unfit to take their advertised places in the course proper gallops at Randwick on April 4, Waterhouse and Bott replaced them but did not notify officials.

They admitted galloping Stampede, Fabrizio and Sort After in place of Serena Bay, Debonairly and English with the three substitutes wearing the silks of the non-runners and the race caller calling them as advertised.

In its judgment on Friday, the Appeal Panel said while the conduct of the trainers was wrong, it accepted they did not intend or think through all of the consequences of their action.

"We have, nevertheless, formed the view that in imposing a $5000 fine, the stewards showed an element of restraint," the panel said.