The Court of Appeal raised the stakes in the legal battle over gaming machines seized last year, referring it back to Supreme Court yesterday.

The owners of machines taken and allegedly damaged in the crackdown on suspected illegal spare parts will now have to sue to Government for compensation.

But if they lose the case those businesses will be liable for all the legal costs incurred to date.

Government began its appeal on Wednesday to overturn a Supreme Court order to pay costs and damages after a judge ruled last year gaming machines had been illegally seized.

Yesterday morning the Court of Appeal hearing was briefly adjourned and Justice Philip Clough then said the matter would be referred back to a new judge.

On Wednesday, the Crown said Puisne Judge Archibald Warner had been biased and had “descended into the arena” during last November's hearing.

Lawyer Mark Pettingill, who is representing some of the bar owners hurt by the bust, said his clients would push on in trying to get their money back, which is estimated to be a six-figure sum.

Yesterday, Mr. Pettingill said the owners would sue Government for trespass and damages and said the Court of Appeal had indicated they had a good case.

He told The Royal Gazette: “It is clear our client never did anything wrong. They didn't find any gaming machines smuggled in or parts deemed to be illegal.”

He denied Mr. Justice Warner had shown bias, but said the Court of Appeal had noted it was a convoluted case.

Government lawyer Phil Perinchief said Government would “strenuously resist any action that is taken by the respondent to the highest court.”

Earlier in the case, he said the respondents had used the wrong Act in taking the case to appeal.

Under the Prohibition of Gaming Act 2001, it is not illegal to operate a gaming machine, but it is illegal to import and fit them with new spare parts.

Customs noticed a large number of dual-use spare parts being imported and declared for use in video machines, but suspected they were being used for gaming machines.

They took 300 machines and raided a number of premises, including Freddies Bar in St. George's, The Beach, The Plush, The Porch and Lucky Strike.