23 Individuals Charged in Major Gambling Grant Fraud Case in New Zealand

Overview of the Charges

On Thursday, February 12, 2026, twenty-three individuals appeared before Auckland District Court in New Zealand, facing over 500 charges related to alleged gambling grant fraud. This case has been described by officials as the largest prosecution of its kind initiated by the Department of Internal Affairs.

Details of the Investigation

The accused stand charged with serious crimes including money laundering, receiving stolen property, and using forged documents. All defendants have been granted temporary name suppression until their next court date on April 9, 2026.

Vicki Scott, the gambling director for the Department of Internal Affairs, characterized the case as the result of an extensive and intricate inquiry—one of the most significant ever undertaken in the country.

Misuse of Class 4 Gambling Funds

The core of this case revolves around the class 4 gambling system regulated under the Gambling Act. Operators of class 4 pokie machines are mandated to allocate a minimum of 40% of their profits back to the community, primarily through grants given to charities and community organizations.

However, investigators allege that the funds meant for community grants were misappropriated. Instead of benefiting genuine causes, a large portion of the grant money was funneled into salaries for fictitious employees, essentially siphoning money through fake positions.

Additionally, many of the charities involved appear to have been fraudulent entities, existing solely to secure funding improperly.

Exploitation of Gambling Venues

Some defendants are also accused of operating a pokie venue themselves. Authorities claim that grant money was routed through venue bank accounts and used to repay profits to class 4 machine operators, constituting a sophisticated exploitation of the gambling system.

This manipulation undermines the gambling framework meant to ensure that profits serve community interests, instead diverting resources for personal gain.

Legal Consequences and Commitment to Enforcement

Vicki Scott emphasized the department’s determination to combat any attempts to weaken the protections that ensure gambling profits benefit the community rather than individuals.

Those found guilty of money laundering or receiving stolen funds could face up to seven years in prison, while the use of forged documents carries penalties of up to ten years imprisonment.