A Canterbury man has been sentenced to six months of community detention and 250 hours of community service for operating New Zealand’s largest illegal lottery. Waiariki McIlroy-Jones, 26, generated $11 million in revenue over one year by selling tickets online, marking the first prosecution of its kind under the Gambling Act 2003, according to the Department of Internal Affairs (DIA).
How the illegal lottery operated
The DIA investigation, which included searches at multiple addresses across Christchurch and North Canterbury in July 2023, revealed that McIlroy-Jones used online platforms to sell tickets for prizes including cash, boats, caravans, high-value cars, and a freehold house. According to DIA director of gambling Vicki Scott, McIlroy-Jones attempted to characterize the operation as a “sales promotion scheme” to avoid the legal requirements governing lotteries. Under the Gambling Act, any lottery with prizes exceeding $5,000 must be conducted by a not-for-profit society holding a class 3 gambling licence to ensure participant protection and operational integrity.
Why the case is significant
The prosecution highlights the regulatory divide between legitimate community-benefit lotteries and unauthorized commercial schemes. While the DIA investigated 76 gambling complaints over the past year, this case represents the largest illegal lottery ever identified in the country. Initially, McIlroy-Jones denied wrongdoing, but he eventually entered guilty pleas both personally and on behalf of his company for conducting illegal gambling and deriving pecuniary gain. The sentence reflects a judicial decision to avoid imprisonment, following the judge’s earlier indication that he would not send the defendant to jail.
What happens next for the seized assets
Authorities are now working to finalize the forfeiture of assets linked to the illegal operation. Police have already secured $4 million in assets through a High Court restraining order. According to the DIA, the Commissioner of Police is expected to seek full forfeiture of these proceeds and assets under the Criminal Proceeds (Recovery) Act 2009. This process will likely serve as the final stage of the state’s enforcement action against the revenue generated during the lottery’s operation.
