THE ABC has admitted it used confidential information belonging to the Star casino when it broadcast the names and gambling habits of two international high-rollers and aired details of internal incident reports.

The national broadcaster has been ordered to pay the Star's owner, Echo Entertainment, $190,000 to cover the casino's legal fees following an out-of-court settlement yesterday.

It has also agreed not to re-publish or re-broadcast any of the material, including photographs of the ''inner sanctum'' gaming pit, and has promised to destroy all confidential casino documents within seven days.

In consent orders lodged with the court yesterday, the ABC admitted its use of the internal database of high-rollers and their gambling patterns, photographs, incident reports and financial data relating to gaming activities was ''in breach of the consequential duty of confidentiality owed by [the ABC] to [the casino]''.

Alan Sunderland, the ABC's acting director of news, said the broadcaster settled the case to protect its sources. The case raised significant issues which should be of concern to all news organisations. ''There needs to be urgent consideration given to the nature of this law, and its potential to undermine legitimate reporting in the public interest, where that reporting is based on the receipt of confidential information,'' he said.