Racing authorities have paid tribute to bookmaking giant Bill Waterhouse who has died aged 97.

Although he was outed for having prior knowledge of the Fine Cotton ring-in affair in 1984, Waterhouse remained the most famous bookmaker in Australia.

"Bill Waterhouse was a true racing character who had presence, charisma and charm," Racing NSW chief executive Peter V'landys said.

"He was both fearless and controversial and added atmosphere and colour to any betting ring.

"Our thoughts are with the Waterhouse family on the sad loss of the patriarch of the family.''

Australian Turf Club chief executive Jamie Barkley echoed V'landys' sentiments.

"Bill Waterhouse was a towering figure in the betting rings of Sydney racecourses for several decades," he said.

"He was amongst the biggest and most competitive in his trade of anywhere in the world during a halcyon period of on-course bookmaking."

Waterhouse was a second generation bookmaker and his son Robbie and grandson Tom followed him into the profession.

When the governing body let him return in 2002, Bill Waterhouse took to his stand to teach Tom the business.

Bill and Tom became Australia's largest on-course bookmakers in 2007 and 2008.

Bill Waterhouse retired from bookmaking in 2010 while Tom Waterhouse now runs a tipping service, leaving Robbie as the family's only on-course bookmaker.