Paradise Enterprises Inc v Kakavas [2010] VSC 25

Facts: At a casino in the Bahamas, Kakavas entered into a gambling loan and lost $1M USD in about 5 hours. Based on his “pathological gambling” condition, Kakavas argued in the Victorian Supreme Court that the gambling loan was tainted with unconscionability and illegality. The parties agreed that the law of Bahamas applied.

Held: It was not unconscionable or illegal under the law of the Bahamas. It was not against Victorian public policy, even if Victorian law would rule otherwise. Therefore, the casino could recover.