SYDNEY'S biggest punter, Eddie Hayson, is one step away from being banned from betting on any sport in Australia if he refuses to answer questions from racing stewards over his involvement in the controversial More Joyous affair.

RAY THOMAS reports in the DAILY TELEGRAPH that Racing NSW issued Hayson with a "show-cause" why he should not be warned off racetracks after the high profile punter and brothel owner has repeatedly refused to reveal the identities of two sources he said provided information about More Joyous's fitness prior to her poor run in the All Aged Stakes at Randwick on April 27.

Hayson has previously informed Racing NSW Stewards that one of those persons had a connection to the stables of Gai Waterhouse, the trainer of More Joyous.

The consequences of being warned off include not being permitted to enter any racecourse or training facility anywhere in the world, not be able to bet on any thoroughbred horse race or place a bet with a wagering operator.

If Hayson is warned off, then this effectively means he cannot place a bet through the TAB or licensed bookmakers.

More Joyous will be running hard in the upcoming Royal Randwick heats. Picture: Mark Evans.

Hayson is a huge gambler, mainly on horse racing and NRL games, and the betting ban would extend to all sports.

Racing NSW chief executive Peter V’landys has established a three-person committee consisting of general manager Keith Bulloch, steward Jim Walshe, and legal counsel Natalie Tipping to conduct the Show Cause hearing on August 13.

The committee will then make a recommendation to V'landys at the conclusion of the hearing to determine whether Hayson should be warned off.

During the May inquiry into More Joyous's All Aged Stakes flop, Hayson gave evidence before stewards that he has learned "vets had been all over the horse" from two sources, one said to be connected with the Waterhouse stable.

Hayson initially agreed to provide stewards with the identities of his sources but has subsequently refused to do so.

"Yes, I did originally say that I'd provide the names," Hayson told The Daily Telegraph last month. "After I left the hearing, and I'd had time to think about it, I decided not to because the last person who gave out information from the stable was sacked.

"I'm not going to be responsible for any person losing their job. I'm sorry, but it's not my go.

"I have done absolutely nothing wrong. All I did was check on More Joyous' fitness prior to the race because everything I was hearing was negative.

"They told me vets had been all over the horse, so I didn't have a bet.''

The fall-out from the More Joyous inquiry continues with Racing NSW also revealing it has introduced new rules to deal with inside information and conflicts of interest in the sport.

"The confidence of the public and racing participants in the integrity of racing is a paramount objective of the Board of Racing NSW,'' V'landys said.

"In introducing these local rules, Racing NSW has been conscious of persons’ individual rights and the need to adhere to the Anti-Discrimination Law. First and foremost, persons must be treated as individuals and their rights must be respected.

"However, the integrity of thoroughbred racing is fundamental to the multi-billion dollar thoroughbred racing industry which has over 50,000 participants in NSW.

"They are consistent with the protocols in place in the corporate world and are intended to ensure that the thoroughbred racing industry has the best practices in place to maintain the confidence of racing participants and the public in the integrity of racing.''

V'landys said he expects other racing jurisdictions around Australia to adopt the rule changes.