A Christchurch man has been sentenced to six months community detention and 250 hours community work for running unlawful lotteries that brought in $11.12 million in revenue.
Waiariki McIlroy-Jones and his company Jonez LRC Ltd were found guilty of running illegal gambling operations and making money from lotteries after entering guilty pleas in January. Judge Raoul Neave imposed the sentence at Christchurch District Court on 24 June.
The unlawful lotteries generated $11.12 million in sales between June 2022 and July 2023, with more than 287,000 entries purchased by 69,500 distinct buyers. Internal Affairs director of gambling Vicki Scott said "in a little over a year this lottery generated over $11 million in revenue, making it the largest illegal lottery ever identified in New Zealand".
McIlroy-Jones initially sold $30 downloadable poster images to enter prize draws for vehicles or cash. By 2023 the business had adopted a loyalty rewards club structure with tiered memberships offering discounts at approximately 40 merchants across six cities. Between April and July 2023, the company conducted 29 separate prize draws, including one offering a freehold house in Rangiora or a $700,000 cash option.
The Department of Internal Affairs brought charges in May 2024 after learning of the activity in October 2022 following public complaints. Officers searched multiple properties across Christchurch and North Canterbury in July 2023, stopping the final two draws before winners could be chosen.
Scott said McIlroy-Jones "sought to pass off his on-line lottery as a 'sales promotion scheme' entirely for self-serving interests and personal gain". The activity failed to meet the standards for lawful sales promotions, with purchasers not receiving adequate information about their memberships. Under New Zealand law, lotteries of this magnitude require licensing and must be operated for community benefit.