A FORMER Racing Queensland Limited director said he believed there was an opportunity back in 2008 to mount a legal challenge over a deal with gaming giant Tatts alleged to have cost the industry $91 million.

MICHAEL MADIGAN reports for THE COURIER-MAIL that the Queensland Racing Inquiry has begun its second week of evidence with former director Bill Andrews saying the board had received legal advice in 2008 that the deal was open to challenge.

Mr Andrews, a solicitor for the past 30 years, said he took the view that the legal advice should be pursued.

"I thought it had legs, it had merit," he said.

"But I took the view it was going to be very hard and it would probably go to the High Court."

The deal, related to the use of racing information, has been in operation for more than five years and has allegedly allowed Tatts to discount more than $91 million from monthly payments to QRL.

Counsel Assisting, James Bell, QC, says it is the inquiry's view the deal was illegal and took away money which effectively belonged to the Queensland racing, greyhound and trotting industries.

"It is proper to note that after careful deliberation the Commission considers the argument compelling that Tatts was not entitled, in law, to make those substantial deductions," he said.

"Arguably then, Tatts has been permitted to deprive the racing industry in Queensland of some $91,000,000 during the relevant period, and more since."

Mr Andrews said it was only he and fellow director Michael Lambert who appeared keen to pursue legal advice suggesting the deal be challenged in the courts.

"It was only Michael and I saying, 'hey you are going to have do something, you can't put this aside, it is so important to the racing industry."

Mr Andrews said the arrangement represented an enormous amount of money to Queensland racing.

STORY SOURCE: THE COURIER-MAIL - NEWS LIMITED.

The inquiry continues.