Pokie machine theft conviction 'a warning to others'

A gaming venue operator's conviction for stealing almost $140,000 of pokie machine profits should be a "powerful reminder" of licensed operators obligations, the Department of Internal Affairs (DIA) says.

Donald Russell Jones, 62, was convicted in Auckland District Court yesterday of seven charges involving theft by a person in a special relationship, dishonestly using a document and failing to bank gaming machine profits.

Jones, a company director, of Northcote, Auckland, owned "Sophie's" where Scottwood Trust operated nine gaming machines, raising funds for community purposes.

Jones failed to bank the gaming machine profits -- as required by the Gambling Act 2003 -- and told a DIA gambling inspector that he used the money to pay his employees.

DIA director of gambling compliance Mike Hill said the department was seeking a court order for Jones to repay the $138,452 to the Scottwood Trust.

"The trust and ultimately the community were victims in this case, losing out on over $138,000 destined to benefit a range of causes," he said.

Mr Hill said the banking charge was the first prosecution of its kind under the Act and the convictions for theft by a person in a special relationship reinforced the obligations under the Act between venue operators and societies licensed to operate gaming machines, he said.

"Gaming machine proceeds must be banked within five working days of calculation. The venue agreement stated that the venue operator would not do anything that is inconsistent with the ownership rights of Scottwood Trust."

Jones was remanded for sentencing on October 18.

- NZPA