A member of a prominent Tasmanian harness racing family who punched a horse in the head just before a race at Launceston has been stood down by TasRacing.

Wade Rattray was found guilty of engaging in conduct prejudicial to the image of racing. ( Facebook: Wade Rattray )

The incident, involving harness racing driver Wade Rattray, was captured on a mobile phone camera while the attendant was handling the Angela Brakey-trained Century Arrow prior to the first race of Wednesday's Newmarket Handicap meeting, with the footage posted to Twitter.

Mr Rattray was working as a barrier attendant at the race.

He has been described in racing circles as a member of the Rattray "harness racing dynasty".

In a statement on Thursday afternoon, TasRacing said Office of Racing Integrity (ORI) stewards had "concluded an inquiry into an incident that occurred at the barrier prior to Race 1 involving barrier attendant Mr Wade Rattray and Century Arrow" at the meeting, finding he had "struck that horse with a clenched fist in the vicinity of the head".

"After taking initial evidence at the race meeting, Mr Rattray was stood down from his duties for the remainder of the meeting by the Stewards acting under the provisions of AR 8(r)," TasRacing said.

Mr Rattray, who represented Tasmania at the 2016 Australasian Young Drivers' Championship in Perth, was found guilty of "conduct prejudicial to the image of racing".

TasRacing said stewards took into account the nature of the offence, the detrimental effects to the image of racing, deterrent factor as well as "Mr Rattray's clean record" and his "personal circumstances".

Mr Rattray was fined $1,500.

A TasRacing spokesperson said Mr Rattray had been "stood down pending an internal review" which is expected next week and that Mr Rattray "won't be handling horses for TasRacing in the meantime".

Wade Rattray's future as an employee with TasRacing is unclear. ( Facebook: Wade Rattray )

Racing officials 'don't condone cruelty'

TasRacing said the ORI would "submit a report relation to this matter" and "work with TasRacing in developing appropriate standards and conduct for barrier staff".

Earlier on Thursday, TasRacing CEO Vaughn Lynch said his organisation did not condone animal cruelty.

"Animal welfare is a strong focus for TasRacing, and we do not condone what appears to have occurred in the incident in question in any way," he said.

Mr Lynch said "training requirements are regularly reviewed and will be considered further following the conclusion of the stewards investigation".

With Jason Maskiell aboard Century Arrow, the four-year-old gelding entered the race as favourite, but went on to finish second behind the Mick Burles-trained Clean Acheeva.

Mr Rattray has been contacted for comment.

Elio Celotto, from the Coalition for the Protection of Racehorses, said the $1,500 penalty was "totally inadequate".

"What happened in Tasmania is animal abuse, it's a breach of the prevention of cruelty to animals act and they need to be punished accordingly, perhaps a jail sentence."

Mr Celotto said the incident was "just another example of the racing industry abusing their horses and forcing them to compete".