Man Caught For Biggest New Zealand Lotto System Fraud

Many people participate in New Zealand’s national lottery, with some landing huge wins, including a family syndicate who won the $30 million Powerball jackpot. However, New Zealand also has strict gambling laws that must be adhered to, whether it’s a real money casino or another organisation/individual.

In what is being called the biggest illegal lottery in New Zealand, a man from Christchurch and his company have been charged with multiple counts related to the conducting and promotion of illegal gambling.

Illegal Lottery Generates $11.1 Million in Revenue, Offers Expensive Prizes

The charges against the man and his company were filed based on the findings of an investigation by the Department of Internal Affair (DIA) of New Zealand, which indicated that the defendant had run an illegal lottery that generated revenue worth $11.1 million-plus – $11,125,466.65 to be precise in just a little over one year.

This illegal lottery is the largest in the history of New Zealand, apparently. Players were enticed to participate in the lottery incentives in the form of expensive prizes in the form of luxury cars, super-expensive boats, caravans and also cash rewards.

What the Laws of New Zealand Say about Lotteries

The defendant and his company were found to be in violation of laws laid down specifically through the Gambling Act of 2003.

As per the Gambling Act of 2003, only non-profit organizations are legally allowed to conduct gambling activities, including lotteries, that offer prizes worth over NZ$5,000 – the equivalent of $3,000 in US Dollars.

Organizations that conduct gambling activities of this nature are required to possess a Class 3 gambling license as well. This is done to ensure that the participants have the required safeguards and protection in place and the overall integrity of the operation remains intact.

What the DIA Investigation Unearthed

The investigation by the Department of Internal Affairs (DIA) brought forth some interesting details. It was found that they had been selling lottery tickets illegally through online platforms and were also offering extravagant rewards as incentives for players to purchase the tickets.

That was not all; the defendant and his company were found to have profited from these illegal activities and violated the Gambling Act of 2003 totally. These results do not augur well for the defendants. They have now been charged with multiple counts that include the following:

Promoting illegal gambling
Conducting illegal gambling
Making a ‘pecuniary gain’ from illegal gambling

The DIA also referred the case to the police who in turn have now filed a formal case against the defendants and initiated proceedings against the defendants in the High Court. That is being considered a decisive step by many, a step that may not augur well for the defendants. They have already made an appearance in court last Thursday in connection with the case.

What the DIA Says about the Case

Speaking about the case, Vicki Scott, the Director of Gambling at the DIA said, “Our strict licensing requirements are there for a reason. We will not hesitate to respond firmly when we see instances of illegal gambling such as unlicensed online lotteries…we have no tolerance for those who seek to profit by bypassing the rules.”