New South Wales Premier Gladys Berejiklian believes perspective has been lost in a stoush about the Opera House being used to promote a horse race, and has called for respect on all sides of the debate.

Key points: The NSW Government was "very close" to securing an amicable agreement on how to advertise the Everest race

The NSW Government was "very close" to securing an amicable agreement on how to advertise the Everest race Gladys Berejiklian says people on all sides of the debate have lost perspective and called for respect

Gladys Berejiklian says people on all sides of the debate have lost perspective and called for respect The Premier says she's upset by the way the saga panned out publicly, aggravating residents

Last night, more than 1,000 protesters used lights and torches to spoil the projection of the Everest barrier draw after Ms Berejiklian overruled the Opera House chief Louise Herron, who claimed the promotion would breach its guidelines.

The debate has raged since Friday, when broadcaster Alan Jones called for Ms Herron to be sacked in a fiery on-air interview, and became an argument about balancing the promotion of NSW against using the iconic building's sails for commercial purposes.

Jones has apologised for the words he used during last week's interview.

Ms Berejiklian today said she was disappointed with the way the debate spilled out into the public arena and aggravated residents.

Sorry, this video has expired Alan Jones says he regrets impact of his interview with Opera House boss

She revealed the Government was close to securing an "amicable agreement behind closed doors" that would have kept all parties happy.

"I'm upset at the way the issue panned out publicly, but I'm equally upset at those who've come out now and been almost as vitriolic in expressing their views," Ms Berejiklian said.

"I encourage the input and say people protest for governments to listen — and we do that — but I also say people on all sides of the argument should be respectful.

"Unfortunately sometimes people on all sides lose that perspective about respect."

Ms Berejiklian said the Opera House policy had similarly been breached for the Ashes, Wallabies and a Samsung promotion.

She said as the daughter of a welder who worked on the building during its construction, a love of the building was "in her blood".

Protesters used torches and lamps to shine over the Everest horse racing advertisement. ( Supplied: Sebastian Reategui )

The drama unfolded during the State Government's Responsible Gambling Awareness Week.

Racing NSW chief operating officer Graeme Hinton said he was surprised by the backlash.

"We were determined to still go ahead with this and promote Sydney," he told Channel 7.

"For us, this was an opportunity to start the establishment of a major event for Sydney."

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Ms Berejiklian said it showed the digital age has made it possible for governments to gauge public opinion in real time.

"That's a positive," she said.

"I want people to know that I appreciate that and respect that."

Amid the backlash, NSW Racing yesterday conducted an early barrier draw in secret and suspended all betting until the results were publicly revealed in the projection.

The racing body cited perceived risks about integrity and security for the move.