Sydney's The Star casino has avoided being convicted for breaching laws designed to combat problem gambling.
The Office of Liquor, Gaming and Racing (OLGR) had taken action against The Star, saying it handed out thousands of dollars in cash prizes in its high rollers room.
The prosecution follows an investigation into a promotional lottery to mark Chinese New Year, which ran from February 1 to March 13.
The lottery was open to casino patrons who turned over $30,000 or more in the casino's high rollers room, the OLGR said.
It's alleged participants were given the chance to win $5000 in preliminary prize draws, with an overall winner given a one-in-50 chance of winning $1 million or a consolation prize of $20,000.
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The OLGR says The Star casino awarded 18 prize payments of $5000 in cash.
It argued the Star breached a trade promotion lottery permit condition prohibiting cash payments between 10pm and 8am.
But in Sydney's Downing Centre on Tuesday, Magistrate Jan Stevenson decided not to record any conviction against the casino and ordered it to pay almost $10,000 in professional fees.
She pointed to the fact The Star had no prior convictions in the 18 years it has operated, its contribution to charities and the fact it had itself reported its breaches to the regulator.
The OLGR had argued that a conviction or fine would serve as a general deterrence.
But Ms Stevenson disagreed that deterrence would be a factor, saying The Star was Sydney's only casino and the decision would have "no affect on a little club in Mudgee".
However, she agreed the laws in question were in place to protect people from gambling all of their money immediately after winning it.
The magistrate also acknowledged the need to protect people from problem gambling and admitted to holding certain "prejudices" toward the issue.
But she concluded the casino had been quick to change its procedures once the breaches came to light and train its staff about the issues.
The casino had argued that the breaches had occurred because of an "oversight" by its cashier staff.
Comment has been sought from The Star.
