Lee last week challeged the ban imposed on him by the WPBSA while they investigate suspicious betting patterns in his Premier League Snooker match with John Higgins on October 11.
The 38-year-old from Trowbridge appointed Robert Englehart QC to call for the suspension to be lifted, but World Snooker released a statement saying the appeal had been dismissed.
"The suspension will remain in place until either the conclusion of the investigation or any resultant hearings," it read.
Lee was suspended 12 days ago, the day after he lost 4-2 to Higgins and only a week after he was told he would not face criminal charges over match-fixing allegations dating back to 2010.
Lee's manager Adam Quigley said in the wake of the suspension that his client was "devastated" by the decision to suspend him and that the player denied any wrongdoing.