SkyCity Adelaide Pty Ltd v Treasurer of South Australia [2024] HCA 37

HIGH COURT OF AUSTRALIA

GAGELER CJ,

GORDON, EDELMAN, GLEESON AND BEECH‑JONES JJ

SKYCITY ADELAIDE PTY LTD APPELLANT

AND

TREASURER OF SOUTH AUSTRALIA & ANOR RESPONDENTS

SkyCity Adelaide Pty Ltd v Treasurer of South Australia

[2024] HCA 37

Date of Hearing: 12 September 2024

Date of Judgment: 16 October 2024

A10/2024

ORDER

1. Appeal dismissed with costs.

2. Special leave to cross-appeal granted.

3. Cross-appeal allowed with costs.

4. Vary the judgment of the Court of Appeal of the Supreme Court of South Australia dated 22 February 2024 by:

(a) deleting the answer "Yes" to Question 3 of the questions of law referred for its consideration and substituting the answer "No"; and

(b) replacing Order 1 of the order for costs with an order that "The appellant is to pay the respondent's costs".

On appeal from the Supreme Court of South Australia

Representation

J T Gleeson SC with A C Roe for the appellant (instructed by Johnson Winter Slattery)

T N Golding KC with M E Boisseau for the respondents (instructed by Crown Solicitor's Office (SA))

Notice: This copy of the Court's Reasons for Judgment is subject to formal revision prior to publication in the Commonwealth Law Reports.

CATCHWORDS

SkyCity Adelaide Pty Ltd v Treasurer of South Australia

Contract – Interpretation – Relief against penalties – Where appellant operated electronic gaming machines ("EGMs") and automated table games ("ATGs") – Where appellant had "Rewards Program" by which Members received loyalty points – Where Member could "convert" points into electronic gaming credits – Where Member could redeem converted credits for cash under specified circumstances or use converted credits to bet on EGM or ATG – Where Casino Duty Agreement ("CDA") between appellant and Treasurer provides that appellant must pay casino duty in respect of net gambling revenue for financial year – Where CDA defines "net gambling revenue" for period to refer to "gross gambling revenue" – Where CDA defines "gross gambling revenue" to mean "amount received ... for or in respect of consideration for gambling" – Where s 51(1) of Casino Act 1997 (SA) ("Casino Act") provides appellant must pay interest and penalties for late payment or non-payment of casino duty in accordance with CDA – Where s 17(4) of Casino Act provides for operation of CDA as deed – Whether converted credits used to place bet constituted "amount received" by appellant "for or in respect of consideration for gambling" – Whether obligation of appellant under CDA to pay 20% per annum interest for late payment could be subject of relief against enforcement if properly characterised as penalty at common law or in equity.