Casinos Strike Jackpot as Poker Machines Ruled Not ‘Deceptive’

Table of Contents

Share at:

The recent case against Crown Casinos shows design features on poker machines are not deceptive, however brings to light further issues about regulations and consumer protection.

Poker Machines in Australia

Australia has had a long history of gambling, with the first legal poker machines operating at registered clubs as early as 1956. These machines are as well-known for their colour and noise as they are for their propensity to get individuals addicted. The Independent Liquor and Gaming Authority annual report estimated that in NSW alone, revenue from poker machines reached up to $73 billion. However, these machines have recently come under fire from a former-addict as being deceptively designed to give off the impression that players had won.

Case Against Aristocrat

Ms Guy brought her case to the Federal Court that the popular Dolphin Treasure machine found in Crown Casinos had been designed by Aristocrat to give off the effect that participants had won, even if they had not. The claim was also brought up that the players’ chance of winning were misrepresented, further inciting gamblers’ obsessions.

Although the justice agreed that the “theoretical return to player” shown on the display screen may be confusing to some players (with numbers presented as much higher than actual chances of winning), she further emphasised that the confusion would be “fleeting”. As such, Justice Mortimer ultimately ruled that the design features of the poker machines could not be constituted as unconscionable or ‘misleading conduct’.

Here, the justice was not prepared to rule that a hypothetical person in the circumstances would have formed a particular impression on the workings of a poker machine based on what they saw on the display screen. The case showed that the expectations and impressions of a hypothetical person in the situation is vital to make out deceptive conduct.

For a comprehensive explanation on what is misleading and deceptive conduct, check out our previous guide.

Consumer Protection Issues

During this case, Justice Mortimer further noted that the relationship between certain design features of poker machines and gambling addictions should be looked into further. Analogous to the development of Australia’s tobacco control, this case also brought to light regulatory issues with goods and services that are considered harmful to consumers.

What do you think about this decision? Let us know your opinions by tagging us #lawpath or @lawpath.

Share at:

Simplify creating legal documents today

Browse through Lawpath's AI tools which can be used to draft, review and refine legal documents today!

Related Articles

Can I Sue For Lost Opportunity?

Yes, you can. However, the lost opportunity must arise from a contractual breach, misleading and deceptive conduct or negligence. See more.

Are Employers Liable When An Employee Makes A Mistake Due To Negligence?

Have you ever wondered if an employer is liable for their employee’s negligence? Read this article to find out.

Are Uber Drivers Employees?

Uber's popularity in the Australian market is increasing at an unprecedented rate. So are Uber drivers employees? Read our guide to find out.

Am I Still Covered by an Award if I Sign an Employment Contract?

Unsure about what an award is or whether it applies to you if you sign an employment contract? Keep reading to find out more.

A Guide on Joint Ventures for Australian Businesses

Considering a joint venture? Learn about types, advantages, setup processes, and key considerations for successful business collaborations in Australia.

How Do I Add a Director to My Company?

If your company is expanding, evolving, or changing direction, you might wonder how to add a director to the company. Here is our step-by-step legal guide!