A court has thrown out a case against two internet cafe owners accused of violating a new Greek law banning computer games in public places.

In a bid to stamp out illegal gambling the Greek government passed legislation in July which banned people from playing video games in public places.

But the law has come under heavy criticism for making no distinction between interactive gambling and computer games.

The two internet cafe owners and an employee were charged after police found some of their customers playing online chess and the popular multiplayer game, Counter-Strike.

They could have been sent to jail for three months and faced fines of $4,950 each.

However, the court hearing the case has ruled the game ban as unconstitutional.

More than 300 supporters had gathered outside the courtroom in Thessaloniki on Tuesday, chanting "No to censorship on the internet".