Gaming machines became illegal at midnight last night after owners failed in a last-minute court bid to put the ban on hold.

Senators yesterday unanimously passed a law meaning gaming operators can face fines of $250,000 and five years in prison from today if they continue to operate the machines.

Lawyer Mark Pettingill, who failed at Supreme Court yesterday to get the ban stayed pending a hearing on constitutional issues, said he had advised his clients ? including Plush owner Neil Inchcup, Jr. and The Beach owner Rick Olson ? to switch off their machines at midnight.

But Mr. Pettingill said there will be a further court hearing to be set shortly when he will seek to have the ban declared unconstitutional because he argues it violates property rights and freedom of assembly.

He said his clients will not be handing the machines over immediately because the machines will be legal if he wins the court case.

Attorney General Larry Mussenden welcomed the Supreme Court decision not to put the Prohibition of Gaming Machines Act on hold pending the constitutional hearing and warned those who flout the law will be dealt with harshly.

?I want to take this final opportunity to encourage the owners of establishments with gaming machines not to commit offences which violate this Act,? said Mr. Mussenden yesterday.

?I want to also urge the public not to commit offences that violate the act as they should be aware that the penalties surrounding this legislation could be very severe.?

Anyone convicted of using a gaming machine for money can be fined up to $1,000 in Magistrates? Court.

Those supplying, selling, servicing or importing them can be fined up to $100,000 and jailed for year, or $250,000 and five years in jail if they are convicted at Supreme Court.

Mr. Mussenden reiterated that home computers, laptops and PDAs will not be made illegal under the Act.

Proposing the legislation at Senate yesterday, Mr. Mussenden said some gaming machine owners were making more than $1 million a year by ?fleecing? customers.

?I know some operators who over the past year have made in excess of $1 million from these machines. Who indeed is benefiting and where is the money coming from?? said Mr. Mussenden.

?People running and operating these machines are making loot that is hard-earned money from people who should be protected from these vices.

?I don?t like gaming machine operators fleecing people. People are slaving away working 40 hours a week and at the end of the week they are giving it away to someone who will lavish it on themselves, which is criminal in my view.?

Mr. Pettingill told yesterday: ?We were not by any means shocked that we didn?t get the stay (from Chief Justice Richard Ground).

?A lot of that was on the basis that the Crown was not prepared to agree but that may be to their peril because if we are right, Government is going to be writing out quite a big cheque.

?We?ve advised our clients to turn them off but they are not going to just hand them over because if we are right, they will be legal.

?We will argue on two strong constitutional points. The first is deprivation of property, which includes goodwill. They are taking away property without compensation.

?Secondly, freedom of association with regard to Plush or other places where they have freedom to associate with what their interests are. This legislation destroys gamblers clubs like Plush.?

The United Bermuda Party and independent Senators joined Government Senators in unanimously backing the prohibition of Gaming Machines Act 2004.

This puts into effect the ban beginning today, spells out the fines and prison terms, and clarifies that computers will not be affected.

Mr. Mussenden also warned that the legislation would also outlaw gaming on a so-called floating casino ship which a group represented by lawyer Llewellyn Peniston is planning.