The Victorian Council of the APBA had 28 days to make a decision and Warwick Lupton said they were informed by email on Friday night that Warlord's victory will stand.
"At this stage we'll still assess the situation," he said.
"They're not complying with their own rule book, which is not a surprise."
Lupton said if the family were to appeal further, it would have to go to the UIN, the world governing body of hydroplanes.
"In Australia, the same people seem to be involved.
"They've got to learn to be honest, to put it mildly."
The Luptons are looking at having a computer engineer analyse the camera footage to make a computer "drawing", which would allow them to look at the placing of the boats on the water from all possible angles.
They have also requested the council send them the video footage from the starter's boat on Lake Mulwala, as well as the drivers' meeting where the rules for the start were discussed, however Warwick Lupton said they have not received a response.
The most likely option for resolution would be for the boats to stay in Australia, saving on costs, in order to compete in a second regatta in September or October, as has been mooted.
"I think they'll probably do that if we go away [from more appeals]," Lupton said.
"At least we'd get another shot at it. We wouldn't leave, we'll stay there.
The fairest way would be to have both Australian and NZ representatives present on the officials' boats and in the timers' room, Lupton said.