NZ Pokie Grant Fraud Case Sees 23 Charged in DIA’s Biggest Prosecution

New Zealand’s Department of Internal Affairs (DIA) has laid charges against 23 people after what it calls its largest-ever gambling prosecution. The case centres on alleged misuse of Class 4 pokie grant funding, with the department saying a network of organisations was used to obtain more than $3 million for personal gain. The charges were filed in Auckland, and the case is likely to draw attention across the wider gambling and community-funding sectors.

DIA alleges sham charities were used to access pokie funds

In its 12 February 2026 statement, DIA said “Operation Indago” investigated six charities and incorporated societies allegedly used to obtain gambling grant funds. The department claims the network secured $3.2 million, with a portion allegedly diverted for personal benefit rather than community use.

DIA Director of Gambling Vicki Scott described it as a

mammoth and complex investigation.

The department also said the defendants appeared in Auckland District Court and face more than 500 charges under the Crimes Act 1961.

Why this matters for NZ’s Class 4 gambling system

The case is significant because Class 4 pokie profits are meant to flow back into communities through grants. DIA said the Gambling Act requires Class 4 operators to return at least 40% of profits to the community.

According to the department, some of the alleged offending involved bogus employees and “sham” not-for-profit organisations. DIA also alleges some funds were laundered through venue bank accounts to repay gaming machine profits back to Class 4 operators.

What happens next

All 23 defendants were granted interim name suppression. DIA said the next court date is 9 April 2026.

The department also outlined the seriousness of the alleged offences, noting that money laundering and receiving charges can carry penalties of up to seven years in prison, while using a forged document can carry up to 10 years.

For the NZ gambling sector, this is a reminder that grant funding compliance remains a major enforcement priority, especially where community-benefit rules are involved.