February 13, 2026 2 min read

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23 Charged in Alleged Gambling Grant Fraud Case

More than 20 people face hundreds of charges in Auckland, New Zealand, after authorities allege gambling grant funds reached sham charities and fake salaries

Twenty-three people stood in New Zealand’s Auckland District Court on Thursday, February 12, 2026, facing more than 500 charges under the Crimes Act, in what authorities say is the biggest prosecution of its kind brought by the Department of Internal Affairs.

“Mammoth and Complex Investigation”

The charges include alleged money laundering, receiving stolen funds, and using forged documents. All of the defendants were granted interim name suppression until their next appearance on April 9, 2026.

According to the department’s gambling director, Vicki Scott, the case follows what she described as its “largest ever prosecution” after a “mammoth and complex investigation” in the country.

At the heart of the case is the country’s class 4 gambling system. Under the Gambling Act, operators of class 4 pokie machines are required to return at least 40% of their profits to the community. That money is intended to be disbursed as grants to charities and community groups.

Scott said investigators allege that wasn’t the case here.

Instead, she said, a significant share of the grant money was channelled into what were presented as salaries for employees who did not genuinely exist. The funds, she claimed, were being siphoned off through “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,” Scott said.

“Cynical Abuse of the Gambling System”

Investigators also allege that some of the defendants were involved in running a pokie venue themselves. 

In that arrangement, Scott said, grant money was allegedly moved through venue bank accounts and used to repay gaming machine profits back to class 4 operators. She described it as a “cynical abuse of the gambling system”.

The accusations point to a system that, on paper, is designed to ensure gambling profits benefit local communities, but in this case may have been manipulated for private gain.

“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,” Scott said.If convicted, those charged with money laundering or receiving face up to seven years in prison. Using a forged document carries a maximum penalty of 10 years.

After finishing her master's in publishing and writing, Melanie began her career as an online editor for a large gaming blog and has now transitioned over towards the iGaming industry. She helps to ensure that our news pieces are written to the highest standard possible under the guidance of senior management.

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