Justice Helen Wilson has found no "special or exceptional circumstances" to grant them bail pending their appeals against conspiracy convictions.
The Obeids, in Cooma Correctional Centre, and Macdonald, in Lithgow prison, heard the judge's decision by video link on Friday during a brief NSW Supreme Court hearing.
"The applicants have each been found guilty and sentenced by a court and they do not enjoy the presumption of innocence, or have a right to liberty," Justice Wilson said in her published reasons.
"To stay an order of imprisonment by granting bail would be a serious interference in the administration of criminal justice."
Justice Elizabeth Fullerton in October jailed Obeid for at least three years and 10 months, his son for at least three years, and Macdonald for at least five years and three months.
After a lengthy and complex judge-alone trial, she had found them guilty of conspiring for Macdonald to engage in misconduct as a minister between 2007 and 2009.
The then resources minister was found to have breached his duties by providing confidential information to the Obeids over a coal exploration licence which delivered a $30 million windfall to their family.
The Crown opposed bail for Obeid, 78, his son, 52, and Macdonald, 72.
Their lawyers contended the men weren't a flight risk, citing compliance with their bail conditions for many years before they were convicted.
They submitted they had "an arguable case" on appeal which will include a claim that Justice Fullerton's verdict was unreasonable.
But Justice Wilson said the bail applications cannot serve as a "trial run" for the appeal proceedings "or as predictor of the likely outcomes of those appeals".
The court was told if their appeals were filed by March, they would be able to be heard by September, but the judgment may not be delivered until 2023.
If they were successful, this would mean a significant portion of their sentence would have been served if they weren't granted bail, their lawyers argued.
Justice Wilson accepted the appeal court had substantial and complex issues to determine and that may not be until early 2023.
But she said all three would still have the majority of their non-parole period to serve by then.
Also, while all three need ongoing medical treatment, the judge said the "weight of the evidence, however, is that Justice Health has the capacity to adequately treat prisoners within the Corrections system, to a standard comparable to that available to the average person in the community".
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