Optus won protection from the Federal Court on Wednesday against the NRL and AFL, which had threatened it with prosecution for allegedly infringing the Copyright Act.
The court ruled that Optus's TV Now service had not breached copyright because it was the users who were responsible for recording the matches and they were made for private and domestic use.
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Optus' TV Now allows people to record and watch TV on their mobile phones and PCs.
The AFL's chief operating officer Gillon McLachlan said it was "highly likely" they would appeal the court's decision.
"We maintain that the Optus action is a breach of copyright," he said.
"However, we are only in the pre-season of this issue."
The NRL's director of media and communications John Brady said the court's decision was of major concern as it threatened the very nature of exclusive rights.
"The decision is very likely to be appealed," he said.
"It is a major concern as it clearly has the capacity to devalue the ability of the sports to sell exclusive rights."
Justice Steven Rares said in his judgement that Optus had not infringed copyright in the ways the AFL, NRL and Telstra, which holds an exclusive licence to use NRL and AFL match broadcasts, had alleged.
Telstra said it was "considering all options".
"We believe that protecting content rights is in the interest of Telstra, the sporting codes and sporting fans who ultimately benefit from the investments that flow from broadcast rights," said Telstra spokesperson Craig Middleton.
Mr Middleton denied reports that Telstra would tear up a $153 million contract with the AFL if it lost the Federal Court case.
Read Bill Code's blog, 'Optus win looks good from the cheap seats.'
