In a New Zealand first, a Canterbury man has been sentenced to six months' community detention and 250 hours of community service for running the country’s biggest illegal lottery.
The sentence today comes after the judge earlier reserved his decision and indicated he wouldn’t send Waiariki McIlroy-Jones to jail.
The 26-year-old generated $11m in little over a year, and was charged under the Gambling Act by the Department of Internal Affairs in the first prosecution of its kind.
After initially saying he did nothing wrong, McIlroy-Jones later pleaded guilty both personally and on behalf of his company 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 benefited from selling illegal lottery tickets via online platforms, with prizes including high-value cars, boats, caravans, cash, and a freehold house.
DIA has investigated 76 complaints in the past year, and now charges have been laid. (Source: 1News)
"Police have managed to secure $4 million worth of assets that have been restrained through a High Court process and are going through the process to have those assets forfeited," said Vicki Scott, director of 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,” the DIA's director of 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 online lottery as a 'sales promotion scheme' entirely for self-serving interests and personal gain."
The prosecution was the first of its kind involving an online illegal lottery in the country.
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.
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