Facts

The Federal Court had to decide whether the "TropicalShop" automaton should be classified as a gambling device under the Gambling Act or can be considered a vending or entertainment machine. The Federal Gaming Board had qualified the "TropicalShop" as a gambling machine and prohibited its operation outside of licensed casinos. The appellants, the importers and operators of the machine, had appealed against this decision.

Considerations

The Federal Court confirmed the assessment of the lower instances that the "TropicalShop" is a gambling machine that falls under the Gambling Act. The following reasons were decisive:

  • The "TropicalShop" is based on a classic, randomly controlled reel game, which is typical for gambling machines. The short game duration of 1-4 seconds and the lack of the possibility to influence the outcome of the game through skill show that the entertainment value takes a back seat to the possibility of winning.
  • The "collectible cards" won can be exchanged for money in practice, which represents a monetary advantage. The high monthly…