Twenty-four hours after Collingwood's first-ever home and away game in Tasmania sold out in minutes, it was called off.
The match, which had been capped at 10,000 tickets, was set to be the Magpies' first-ever home and away fixture in Tasmania, and just their second visit this century.
The game will instead be played behind closed doors at the MCG at 2.10pm on Sunday.
It is unclear whether next weekend's round 22 match featuring the Western Bulldogs - the final game of the state government's five-year deal with Hawthorn - will go ahead at UTAS Stadium.
Gutwein said the government did not consider letting the game proceed without a crowd, and that the state wouldn't lose money as a result of the last-minute cancellation.
"Because we had no AFL played in the state last year the state saved several million dollars," he said.
"This year we've had additional games ... and that has cost us usually around the same amount as a game would have cost us last year, so it's a breakeven situation."
At the same time the cancellation was announced, the AFL Commission was continuing its two-day review of the Colin Carter report.
Gutwein said calling off Sunday's game - the second last-minute cancellation of a Launceston AFL fixture this season - would have no impact on the state's bid for a standalone AFL team.
"Last weekend I think the AFL cancelled five games on the mainland and provided a change in venue and timeframe," he said.
"This is just the way that we're living at the moment unfortunately.
"It simply would not be the responsible thing to do to allow that to go ahead at this stage, noting that we'll have a surge of testing and many of those results won't be in by Sunday."
The AFL said all fans who had purchased tickets to Sunday's game would be reimbursed, with no action required from purchasers.
"The health and safety of everyone in the game and the wider community remains the priority as we continue to navigate the pandemic," an AFL statement read.
Both clubs responded to the news on social media with Collingwood posting on Twitter: "We won't be playing in Tassie on Sunday. Real flat for the Magpie Army down there."
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