A GROUP of business people will go to the Supreme Court in July to challenge the legitimacy of the law that bans the use of gaming machines.

A Queen's Counsel has been hired by the group who will claim that the ban ? under the Prohibition of Gaming Machines Act 2004 ? is unconstitutional and discriminatory.

The local lawyer acting for the group is Mark Pettingill.

"The Act has banned the use of gaming machines and our position is that this is unconstitutional and deprives our clients of the income they had been making from these machines," Mr. Pettingill said.

"Our argument is that there are many forms of gambling that are allowed, so this Act is also discriminatory. They're saying that people can't use gaming machines but gambling is allowed in other places."

One of the businessmen going to court is Rick Olson, owner of The Beach bar on Front Street. The Beach previously had up to 21 gaming machines, which used to generate the majority of its income . "The gaming machines are in mothballs in a warehouse at the moment and we're hopeful of being able to bring them back," Mr. Olson said.

"We believe we have a strong case and that's why we're hiring a QC as well as Mr. Pettingill to represent us."

He added that he had a stake in a company that operated gaming machines in the Turks & Caicos Islands and that had paid out $100,000 a year to the government there for the privilege.

Mr. Olson and his three partners receive around a third of the income generated by their gaming machines, while the bars where they are situated get a third and the government gets the remaining third.

"The Turks & Caicos has a much smaller population than Bermuda and we're one of three companies operating gaming machines there," Mr. Olson said. "It's a pity the Bermuda Government is missing out on a potential source of income."

Offences under last year's Act range from having a gaming machine on licensed premises to selling and supplying gaming machines. The offences are punishable by fines of up to $250,000 and/or imprisonment.

Betting on the pools, on sporting events at licensed bookmakers, or in Crown and Anchor games at Cup Match, are all allowed, as gambling continues to be a grey area under Bermuda law.