INZ declined to invite the workers to apply for the visas.
AFL then applied for a judicial review of the decision, stating it was "capricious and arbitrary."
"Where a decision-maker has acted unreasonably in that sense, then the court should properly treat the situation as one in which no decision has been made," it said in the application.
In a decision released by the High Court of New Zealand on Wednesday, AFL's bid was dismissed.
It was dismissed under section 186(3) of the Immigration Act which states there is a limited right of review in respect of temporary entry class visa decisions.
A person may bring review proceedings to a court in respect of a decision in relation to a temporary entry class visa except if the decision is in relation to the refusal or failure to grant a visa to a person outside New Zealand.
It follows a Covid-19 outbreak and a managed isolation facility in Christchurch earlier this year.
Thirty-two members of a group of Russian and Ukrainian fishermen tested positive for the virus.