The Racing NSW Appeal panel has reserved its decision after Gai Waterhouse and training partner Adrian Bott appealed a conviction and penalty imposed by stewards for substituting horses at a televised track gallop.

Waterhouse and Bott replaced three horses deemed unfit to take part in the Breakfast With The Stars promotion at Randwick on April 4 but did not notify officials.

They were subsequently found guilty of breaching the rule regarding conduct prejudicial to the images or interests of racing and fined $5000 on April 27.

Although they acknowledged galloping Stampede, Fabrizio and Sort After in place of Serena Bay, Debonairly and English, Waterhouse insisted "there was no crime committed".

At the inquiry in April, Racing NSW chief steward Marc Van Gestel said punters could be disadvantaged when race caller Darren Flindell inadvertently described the work of substitute horses, two of whom were not eligible to gallop on the course proper that day.

The appeal was heard at the Racing NSW headquarters in Sydney on Friday and the panel will release its decision after considering the arguments.