Customs and Police are believed to be appealing after Supreme Court ordered that costs and damages - possibly worth up to six figures - be paid to a number of businesses who had gaming machines illegally seized.

Assistant Justice Archibald Warner found in favour of the businesses yesterday when he ruled that warrants used to seize the units in a crackdown on suspected illegal spare parts were unlawful.

It could lead to the Crown having to pay out thousands of dollars in lost earnings and damages to five premises who took action against Customs.

Their lawyer Mark Pettingill said he expected the damages could reach six figures, and said questions should be asked about the "misguided" advice Customs and Police received..

Mr. Pettingill said: "The judge basically ruled that Customs had effectively been misguided with regard to the application under Section 97 of the Revenue Act and in their own affidavits. I had indicated there was no wrong-doing in relation to that section of the Act.

"Justice Warner said damages should be investigated and costs awarded.

"I anticipate that we will go back to court to discuss the damages further, unless Customs agrees to pay out what the businesses say they have lost. It could be in excess of five figures."

Mr. Pettingill said he had been cautiously optimistic all along.

He said the warrants had been issued under the Revenue Act in relation to the gaming machines, but said that did not wash because the machines had all had duty paid on them. The warrants were not specific to any suspected spare parts.

Therefore, they did not permit Customs and Police to seize the units.

He added: "To my mind, there is going to be a finger-pointing exercise now. There has been a debacle and even the judge commented that Customs were misguided.

"Clearly, the guidance had to come from somewhere. Where ever it has come from, questions have to be answered. It has transpired that it was not very well thought out and it is going to potentially cost a lot of money.

"But I'm pleased with the outcome and my clients are pleased."

Nine writs were filed against Customs and Police by businesses who had had gambling machines seized last month.

The law enforcement agencies confiscated 330 machines on suspicion that they had been fitted with new spare parts from overseas.

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 huge amount of dual-use spare parts being imported and declared for use in video machines, but suspected they were being used for gaming machines.

They raided a number of premises, including Freddies Bar in St. George's, The Beach, The Plush, The Porch and Lucky Strike, which have all been represented by Mr. Pettingill.

But some others also took action, although will not necessarily qualify for damages.

As a result, about eight businesses had their machines returned last week in the interim until the outcome of the whole hearing yesterday.

Last night, neither the Police or Customs commented on the result of the hearing, but The Royal Gazette understands they are appealing the decision.

And no one was available for comment from either the Attorney General's Chambers or the Director of Public Prosecutions office.