The Federal Court imposed penalties of $9 million on an individual and $15 million on his corporate vehicle for 154 contraventions of s 15(2A) of the Interactive Gambling Act 2001 (Cth) arising from operating illegal online poker services over approximately five months. The Court held that where a corporate respondent has no assets and will be de-registered, the corporate penalty should be effectively disregarded when determining the individual's penalty to ensure the penalty retains deterrent effect, and that penalties must significantly exceed the gain obtained ($7.2 million in deposits, approximately $4.2 million profit) to avoid being treated as an acceptable cost of doing business. The Court also confirmed that the course of conduct principle is inconsistent with Parliament's express provision in s 15(2B) for separate daily contraventions, with the totality principle instead serving as the appropriate check on aggregate penalties.
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