New Zealand launches biggest-ever gambling grant fraud case as 23 face 500+ charges

The Department of Internal Affairs says a network of “sham” community organisations diverted about NZ$3.2m in Class 4 pokie grants for personal gain, triggering its largest prosecution to date.

New Zealand’s Department of Internal Affairs (DIA) has filed more than 500 charges against 23 people following what it describes as a “mammoth and complex” investigation into suspected fraud involving Class 4 gaming machine (pokie) grant funds.

In a statement dated 12 February 2026, DIA said the defendants appeared in the Auckland District Court and face charges under the Crimes Act 1961, including alleged offending linked to money laundering, receiving, and using forged documents. DIA calls the case its largest ever prosecution.

DIA said “Operation Indago” examined a network of six charities and incorporated societies allegedly used to obtain NZ$3.2 million in gambling grant funds for personal gain. Under New Zealand’s gambling framework, Class 4 operators must return at least 40% of profits to the community via grants to community organisations and charities.

According to DIA, a large portion of grants were allegedly claimed as salaries for essentially bogus employees, and some organisations appeared to have been set up primarily to access funding. DIA also alleges that some defendants ran a pokie venue and that grant funds were laundered through venue bank accounts to repay gaming machine profits back to Class 4 operators.

All defendants were granted interim name suppression until the next court date on 9 April 2026. DIA notes that the alleged offences carry significant penalties, underscoring that community return rules are being treated as a core integrity pillar, not an administrative formality.