A Christchurch company director has pleaded guilty to illegal gambling offences in relation to the largest ever illegal lottery in New Zealand.
Waiariki McIlroy-Jones, the director and owner of Jonez LRC Ltd, and his company today entered guilty pleas in the Christchurch District Court for conducting illegal gambling and making a pecuniary gain from illegal gambling under the Gambling Act 2003.
An investigation by the Department of Internal Affairs – which included searches of multiple addresses across Christchurch and North Canterbury – in July 2023 found McIlroy-Jones had personally benefitted from selling illegal lottery tickets via online platforms with prizes including high-value cars, boats, caravans, cash and a freehold house on offer.
“In a little over a year, this lottery generated over $11 million in revenue, making it the largest illegal lottery ever identified in New Zealand,” the DIA's director gambling Vicki Scott said.
"Lotteries on this scale are required by law to be licensed and must be conducted for community benefit. In this case Mr McIlroy-Jones sought to pass off his on-line lottery as a 'sales promotion scheme' entirely for self-serving interests and personal gain."
The prosecution is the first of its kind involving an online illegal lottery in the country, she said.
"It clearly signals our lack of tolerance for anyone who tries to evade the strict controls in the Gambling Act that are there to ensure gambling is fair, well-run and responsible, and that any potential harm is minimised to keep our communities safe. It also means money goes back to the community.
DIA has investigated 76 complaints in the past year, and now charges have been laid. (Source: 1News)
“This successful prosecution should serve as a stark warning to anyone involved in running an illegal lottery of any scale that they can expect to find themselves the focus of our investigators."
Under the Gambling Act, gambling with prizes that exceed $5000 could only be conducted by a not-for-profit society for authorised purposes and required a class 3 gambling licence to ensure the integrity of the operation and protection of participants.
Money and assets associated with the offending are currently subject to a High Court restraining order and forfeiture of the proceeds and assets will be sought under the Criminal Proceeds (Recovery) Act 2009 by the Commissioner of Police.
McIlroy-Jones and Jonez LRC Ltd will return to court for sentencing on May 29.
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