At present, the Department of Internal Affairs controls gambling in New Zealand. Gambling operators must be licensed by the Gambling Act of 2004 or its equivalent to operate legally. Similar to other countries the gambling regulator ensures that licensees adhere to rules and seeks to eliminate illegal gambling.
People or organizations that offer illegal gambling can be charged with criminal offenses, which may include fines or even prison. Yanxian Liu is an Auckland restaurateur who has never been charged with illegal gambling. NZ Herald revealed that the man whose Favona home in Auckland was searched by police on June 20, 2021 was able accumulate thousands of dollars in illegal gambling profits. Police found NZ$141.480 ($87.700) in his home as well as tobacco and cigarettes.
A thorough investigation was conducted and the Customs were consulted to determine if Liu had paid taxes on the tobacco and cigarettes. The authorities were surprised to discover that the man had not paid any tax despite owning 14,000 Chinese cigarettes and 1.5 kg of tobacco.
The Court Orders Money to be Forfeited
Liu, it is alleged, was selling cigarettes and tobacco illegally. Further investigation revealed that the money was actually derived from illegal gambling sessions of mahjong, moneylending and the sale of cigarettes.
Liu, who was a co-owner of a Chinese restaurant in Newmarket, allegedly organized mahjong betting. When law enforcement checked, they found that the restaurant did not have the authorization to offer any gambling games. This made this activity illegal. Investigators also found out that Liu was not registered as a financial services provider, which rendered his money lending operation illegal.
According to the Commissioner, Mr Liu is operating illegal mahjong games from which he makes money. He also sells cigarettes that are not ordered and gives credit to gamblers.
Justice Ian Gault
Criminal Proceeds Act allows for the forfeiture money that has been proven to have come from illegal activities. Liu was ordered to forfeit the NZ$141.480 ($87.700) by a High Court ruling ruled by Justice Ian Gault. The restaurant owner, who was not charged, may have escaped the bullet.
