Racing Minister Martin Pakula is saddling himself with the blame for the Victorian government's Cox Plate call, despite the premier also agreeing to the original announcement.
The Andrews government did a quick about-face on Tuesday night after the decision to allow a select group of spectators on course was met with criticism.
Hours earlier, it had been announced up to 500 racing connections would be able to attend Moonee Valley for Friday night's Manikato Stakes and Saturday's Cox Plate - the 100th running of the weight for age championship.
An apologetic Mr Pakula said he was "struck" by the backlash and admitted the call did not mesh with community expectations under the current regime of restrictions.
"It was a mistake in hindsight," he told reporters on Wednesday.
"To me, the 100th running of the Cox Plate is very significant.
"What I didn't do well enough was to step back and see how it would be perceived outside the racing industry by people who are not racing fans or have no love for it at all."
While some Melbourne restrictions were eased this week, retail businesses remain mostly shut and there will be no large gatherings in the city for Saturday's AFL grand final or Sunday's NRL decider.
Mr Pakula denied he was too close to the racing industry and declined to divulge intricate details about how the final call came to be made.
"There was a plan that was put to us by the Moonee Valley Racing Club," he said.
"There was then a conversation between my department and DHHS.
"Let me be really clear: I was the proponent and I'm not seeking to share that around."
Premier Daniel Andrews was also guarded on the decision-making procedure while admitting he initially backed the idea.
"I'm not here to provide medical advice," Mr Andrews said.
"This went through a normal (public health) process, it was deemed safe."
Victoria is poised to bring forward further rule easing slated for November 2 to this Monday, after this weekend's major sports and racing events.
It comes just in time for next Tuesday's Melbourne Cup, but Mr Pakula said it was "highly unlikely" a large crowd would be in attendance at Flemington.
He insists the Cox Plate cock-up hasn't changed the outlook for the race that stops the nation.
"I'm sure the VRC (Victoria Racing Club) has had in the past significant ambitions about what would be allowed," Mr Pakula said.
"But the conversations in recent times have been much more about connections."
