In Australia, casino operators are prohibited from handing out cash prizes at certain times of the day. This measure has been enacted in order to discourage compulsive gambling behaviour, but The Star Casino has breached this rule and is currently under investigation over the matter. To celebrate Chinese New Year, The Star Casino held a lottery prize promotion.
Players were able to accrue prize points for every $30 000 they wagered at table games. For each prize point they earned, they received one entry into a draw for a $1 million prize. Every player who had their name drawn received a $5000. The promotion sounds innocent enough, but the prizes were awarded during prohibited hours.
In 2011, a rule was introduced that prohibited casino operators from handing out cash prizes between 10pm and 8am. The provision was introduced after it was discovered that a pokie club was providing players with $100 bill during the middle of the night to encourage players to continue wagering. Any winnings that are paid out during this time must be issued with a cheque or a bank transfer.
This prevents players from turning around and immediately spending the money on more casino games. It is quite a responsible harm reduction measure, which has the same objective as poker machine down time in Sydney. Players are discouraged from spending money in the early hours of the day and in the middle of night, which forces them to take a break and give a second thought to their spending.
Any venue that does not comply with the rule has to pay upwards of $2200. As such, The Star Casino is facing fines worth $40 000. The case will be taken to the Downing Centre Local Court, where The Star will defend itself against the claims.
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