A Christchurch judge has reserved his sentencing decision in the case of the country’s biggest illegal lottery, but said the defendant won't be going to jail.
Canterbury man Waiariki McIlroy-Jones generated $11 million in a little over a year, after initially saying he had done nothing wrong.
He then later pleaded guilty both personally and on behalf of his company.
McIlroy-Jones, director and owner of Jonez LRC Ltd, entered guilty pleas for conducting illegal gambling and making a pecuniary gain from illegal gambling under the Gambling Act 2003.
The investigation was led by the Department of Internal Affairs, with police seizing assets.
"Police have managed to secure $4 million worth of assets that have been restrained through a High Court process and going through the process to have those assets forfeited," said Vicki Scott, director gambling at the Department of Internal Affairs.
"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."
"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 online lottery as a 'sales promotion scheme' entirely for self-serving interests and personal gain," she said.
"This is the first prosecution of an online illegal lottery in New Zealand. 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.
"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 can 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.
Judge Raoul Neave has reserved his decision until June 24.
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