More than 20 people charged over $3.2m pokie fraud in New Zealand
Pokie charges follow major investigation by the Department of Internal Affairs
Twenty three people have been charged following a major investigation by the Department of Internal Affairs into a network of community organisations, dishonestly used to obtain gaming machine grant funds worth over $3m.
Appearing before Auckland District Court, the defendants face over 500 charges under the Crimes Act 1961, including alleged offending related to money laundering, receiving, and using forged documents. It is the Department’s largest ever prosecution.
“Taking its name from a Latin term meaning ‘to track down’, ‘Operation Indago’, probed a network of six charities and incorporated societies used to obtain $3.2m of gambling grant funds for personal gain. It’s been a mammoth and complex investigation,” said Vicki Scott, Director Gambling, at the Department of Internal Affairs.
“The Gambling Act requires class 4 pokie machine operators give a minimum of 40 per cent of profits back to the community. They do this by making grants to community organisations and charities. In this case, a large portion of the grants were obtained under the guise of salaries for what were essentially bogus employees. Indeed, a number of the charities appear to have been ‘sham’ not-for-profit organisations, set up for the sole purpose of obtaining funding.
“A further feature of the alleged offending was that some of the defendants ran a pokie venue and the grant funds were laundered through venue bank accounts to repay gaming machine profits back to class 4 operators in a cynical abuse of the gambling system.
“We will continue to respond strongly to any attempts to undermine the important measures that ensure gambling profits go back into the community, not into individuals’ back pockets,” Vicki Scott, Director Gambling, Department of Internal Affairs says.
All the defendants were granted interim name suppression until the next court date, on 9th April 2026.
Money laundering and receiving offenses have a maximum penalty of seven years imprisonment. Using a forged document has a maximum penalty of 10 years imprisonment.
