Department of Internal Affairs Targets Illegal Gambling Operations

The Department of Internal Affairs (DIA) has intensified its efforts against illegal gambling operations in Auckland, revealing a troubling link between these venues and predatory lending practices aimed at vulnerable individuals. Recent raids on several unlicensed poker dens exposed a network that not only facilitates unlawful gambling but also exploits players through exploitative loans, leading some to relinquish their cars and homes.

Raids and Findings

In a series of coordinated actions, the DIA targeted poker venues across various locations in Auckland, including Albany, Botany, Epsom, and Newmarket. The operations resulted in the seizure of poker tables, cash, chips, and cryptocurrency, highlighting a significant breach of the 2003 Gambling Act. According to the DIA, these venues are thought to have generated approximately $5 million in total spending, with high-stakes games requiring buy-ins in the thousands.

Vicki Scott, the DIA’s gambling director, discussed the findings during an interview on Morning Report. She noted that while not all venues are linked to organized crime, there is a concerning trend involving connections to Chinese criminal groups. “There are some links, they’re not all linked. We are seeing predominantly Chinese organisers and participants,” Scott explained, indicating the complexity of the investigation.

Impact on Vulnerable Individuals

The DIA’s investigation revealed disturbing practices among the operators of these illegal gambling dens. Scott described how vulnerable individuals are lured into taking out loans with exorbitant interest rates, leading to a cycle of debt. Some individuals have reported having to surrender significant assets, including cars and homes, to repay their debts. In extreme cases, individuals have been compelled to engage in illegal activities, such as drug dealing, to settle gambling debts.

“Combined with the illegal gambling is some really predatory lending practices with these operators offering credit to vulnerable people who are falling further and further into debt,” Scott elaborated. This predatory approach not only exacerbates the financial struggles of participants but also creates a dangerous environment where individuals feel trapped.

Despite the illegal nature of these operations, some venues operate openly, presenting themselves as legitimate businesses. Scott pointed out that these organizers frequently use social media to promote their activities, often targeting individuals directly on the streets. “There are some that trade as though they’re lawful businesses, quite brazenly out in the open,” she noted.

Under current regulations, poker can only be played legally in licensed casinos. Clubs may apply for a license to host tournaments, but any event with a prize pool exceeding $5,000 must receive approval from the DIA. While nine venues have been shut down, Scott warned that many more remain operational. “It’s certainly not the full extent of it, so we really do rely on the public to report to us when they hear of or see any of these operations,” she said.

The DIA encourages anyone with information about illegal gambling activities to reach out directly. As the investigation continues, authorities remain vigilant in their efforts to protect vulnerable individuals from exploitation in Auckland’s underground gambling scene.