Full Breakdown
New Zealand Court Sentences Waiariki McIlroy-Jones for $11 Million Illegal Lottery
6/24/2026, 5:33:12 AM
Illegal $11 Million Lottery Scheme and Sentencing
Waiariki McIlroy-Jones ran an online lottery that offered cash, vehicle and property prizes, including a freehold house and $700,000 cash. The scheme breached the Gambling Act because it operated without a class-3 licence and was not run by a not-for-profit society. In November 2023 the Christchurch District Court imposed a non-custodial order and ordered forfeiture of proceeds under the Criminal Proceeds (Recovery) Act.
Legal Background
Under the Gambling Act, prizes over $5,000 must be offered only by a not-for-profit society. The Department of Internal Affairs (DIA) received complaints in October 2022 and began investigating. In July 2023 DIA officers raided multiple Christchurch and North Canterbury addresses, seizing dozens of vehicles and two properties linked to the lottery.
Key Participants
Waiariki McIlroy-Jones was the sole director of Jonez Vehicle Buyers, renamed Jonez LRC in 2023, which dealt in used-car sales. The Department of Internal Affairs, led by director Vicki Scott, pursued the case. Judge Neave presided over the Christchurch District Court hearing and delivered the sentencing.
Timeline
Complaints were lodged in October 2022, the DIA raid occurred in July 2023, and the court delivered its sentencing in November 2023.
Scale
Approximately 69,500 individuals bought about 287,000 entries, generating over $11 million in prizes. The scheme advertised a $1 million giveaway, a freehold house in Rangiora and a $700,000 cash prize. DIA seized dozens of cars and two residential properties during the raid.
Impact
The case is New Zealand’s first prosecution of an online illegal lottery, and officials say the forfeiture order is intended as a deterrent to prevent unlicensed gambling schemes.
Official Statements
Judge Neave noted factors such as the scheme’s duration, sophistication and lack of community benefit, and described the forfeiture order as a deterrent. Vicki Scott said the prosecution should serve as a stark warning that anyone running an illegal lottery could become the focus of a DIA investigation.
Criticism
The judge warned that the forfeiture could sweep up legitimate assets, and noted that the exact profit from the scheme remains unclear, raising concerns about penalty’s breadth.
Verbatim Quotes
- “The biggest loser in fact will be him, because some legitimate things will be swept up in the forfeiture.” — Judge Neave, Christchurch District Court
- “Vicki Scott, DIA’s director of gambling, said earlier this year that the successful prosecution should serve as a stark warning to anyone involved in running an illegal lottery that they could expect to find themselves the focus of an investigation.” — Vicki Scott, Director of Gambling, Department of Internal Affairs
Next Steps
A forfeiture application under the Criminal Proceeds (Recovery) Act is pending, and asset seizures are expected as authorities continue to enforce gambling regulations.
