$12,000 fine over illegal casino

Police found gambling tables and equipment for a range of Chinese and European casino games in January's raids and kept the gear under guard after the bust. Picture / Greg Bowker

An Auckland man has been fined $12,000 for his role in an illegal casino - the first conviction of its kind under the Gambling Act.

An Yi Li pleaded guilty in the Auckland District Court yesterday to three charges related to the illegal casino and was fined $4000 plus costs on each count.

Judge Josephine Bouchier also ordered forfeiture and destruction of gambling equipment seized by inspectors.

Department of Internal Affairs deputy secretary Andrew Secker said outside the court that An Yi Li was one of seven people charged with offences under the act. The others were yet to appear in court.

He said the case began in September last year when Customs staff at Auckland Airport found gambling chips with a face value of $480,600 and other equipment being imported.

The chips and gambling equipment had been manufactured overseas specifically for the illegal casino, which had its logo printed on them.

In January, gambling inspectors and police executed search warrants at two Newmarket addresses.

One of the premises consisted of a large lounge bar and four gambling rooms, containing gambling tables, cards, chips, tiles and other equipment for a range of Chinese and European casino table games.

Judge Bouchier said An Yi Li had clearly been part of a complex, illegal gambling operation.

She rejected a defence submission that the three charges should have been combined into one representative count and noted that Parliament had greatly increased the penalties for such offending.

The Gambling Act, which was passed in September 2003, allows for stricter regulation of licensed gambling and beefs up the penalties for illegal operations.

Mr Secker said there had been important changes in how licensed casinos and gaming machine operators were regulated.

"And now it is the turn of illegal operators."

Internationally, gambling was heavily regulated because it involved large, very rapid cash turnover that attracted criminal elements, he said.

In the year to June 30 last year, licensed gambling in New Zealand generated gross profits of more than $2.039 billion.

Illegal gambling had been linked to drug trafficking and violent crime, and in some cases gamblers and their families were threatened and attacked after incurring debts.

The gamblers could then be recruited to carry drugs and commit violent crime to pay off their debts.

"New Zealand is not immune from criminals trying to get involved in gambling," Mr Secker said, "and Government agencies are working closely together to curb this type of offending."

- NZPA