The former captain of the casino ship Niobe Corinthian has lost an appeal against his $15,000 fine for illegally importing 100 gaming machines into Bermuda.

Fermin Reyes, 33, from Panama, was found guilty by a magistrate in July 2007 along with the ship's manager George Kezas, 75, from St. George.

The vessel was raided by Police in August 2006 when she was moored at Marginal Wharf, St. David's. The officers seized the 100 slot machines on board, with Reyes and Kezas later arrested.

They were charged with importing the machines or causing them to be imported, but maintained their innocence throughout their trial, which lasted for almost a year due to numerous delays.

Their lawyers argued the ship was only in Bermuda in transit and it was not intended the machines should be used on the Island or in its waters.

Kezas said he was managing director and general manager of the ship "in title only" and had nothing to do with bringing it to Bermuda. Reyes said he had no idea it was against the law to bring the machines in.

On Friday at Supreme Court, Reyes' lawyer Elizabeth Christopher asked Chief Justice Richard Ground to reduce the $15,000 fine to a conditional discharge, which would mean no criminal conviction recorded against his name.

She said the captain left Bermuda after the case and has found another job, but having a criminal conviction could cause problems for him when entering ports.

She said he has a young child to support, who was born on the weekend he spent in custody after his arrest in 2006.

Ms Christopher added that, in her view, there is no deterrent value in imposing such a punishment. The fine has yet to be paid, due to the appeal, but Reyes has a surety for it in Bermuda.

"No-one's going to bring another ship or import gambling machines in that way or be prevented from doing it because they know that Fermin Reyes received a criminal conviction for being the captain of that ship," said Ms Christopher.

But prosecutor Carrington Mahoney argued: "The public interest is that the message must be sent that gambling in whatever form, whether importation of machines or the use thereof, is strictly prohibited."

Rejecting the appeal, Mr. Justice Ground said the sentence imposed by magistrate Khamisi Tokunbo was the right one.

"This was a commercial enterprise... the appellant was also the captain of the ship. Therefore there was an obligation on him to be aware of the legal restrictions in the port in which he sailed."

Kezas is still awaiting sentence, as he left the Island after being convicted.

He is also represented by Ms Christopher, who told the court yesterday that Kezas has now returned to Bermuda and should be sentenced soon.

Like Reyes, he faces a maximum penalty of two years in jail, a $100,000 fine, or both, for breaking the law banning gaming machines from Bermuda.

Meanwhile, Mr. Mahoney said the machines remain in a warehouse where they have been since they were confiscated "pending an application for them to be forfeited and destroyed."

He said the application would be filed once Kezas is dealt with.

Lawyer Llewellyn Peniston, who has acted for the owners of the ship, Estrellas Management British Virgin Islands, said after the hearing that the Niobe Corinthian has not operated for some time and remains moored in St. David's.

The ship began to host gaming events in international waters 12 miles off shore, using machines imported prior to the 2001 ban.

However, Mr. Peniston said the weather was too unpredictable and parties hosted in Bermuda waters attracted the attention of the authorities.

The ship was raided by the Police when it was docked in St. George's in September 2008 and ten people were arrested after Police found people gambling on board. No charges were pressed.

Former Premier Ewart Brown tried to get Bermuda's strict anti-gambling laws relaxed, but was opposed by church groups and politicians from both sides of the house.

His green paper on relaxing the Island's gaming laws was opposed in the House of Assembly earlier this year. He was also defeated in 2009 over a bill to allow cruise ships to operate their casinos at night while in port.

"It hasn't been operating for a while now. The owners ran into some failed promises by the outgoing leader of the Progressive Labour Party who promised to help," said Mr. Peniston of the ship.

"He was Minister of Transport that includes vessels as well. He had various meetings with those principals and led them to believe he was in a position to help them ease the logjam to operate. They needed permission to operate the vessel."

Mr. Peniston said if the new Paula Cox administration does not ease the situation, the ship will have to be sold or move elsewhere to operate.