'Life changing' prizes seized as company is investigated over potential illegal gambling

Tuesday, 25 July 2023

Luxury cars and a large modern home are some of the “life changing” prizes which have been seized from a Canterbury business amidst an investigation into potential illegal gambling.

Jonez LRC Ltd doesn’t have a gambling license, but its Rangiora-based owner Waiariki McIlroy-Jones says he doesn’t need one because that isn’t what his business is doing.

Using its social media channels, the company shares an image or video of a “prize” (usually a car) it has on offer and encourages viewers to enter a draw to win it through its website, which has since been taken down.

However, despite describing it as a “give away”, entries to the draw cost money and could be purchased as package deals with other merchandise.

McIlroy-Jones declined to speak to The Press on Monday before he had sought legal advice, but he denied any wrongdoing.

Previously when someone directly asked the company’s Instagram how it worked around gambling laws, either McIlroy-Jones or an employee said “it runs as a promotion”.

Some people on social media have accused him of using gambling loopholes or even “scamming” people to make money, but McIlroy-Jones denied this.

He said there were many fake social media profiles purporting to be his company, which may have tricked people into handing over money.

A Department of Internal Affairs spokesperson confirmed it was leading an investigation into Jonez LRC Ltd, however they would not comment further as the investigation was ongoing.

The spokesperson referred to its website on lottery game rules.

Legally, a lottery is a scheme where multiple participants pay (directly or indirectly) to enter, winners are drawn and then prizes are distributed. The definition of a lottery includes raffles and sweepstakes.

A licence is required if the total value of prizes per session was over $5000 and the turnover of the gambling is more than $25,000.

According to Jonez LRC’s social media biography, the company had given away over a million dollars worth of prizes, which it appeared to have been doing for around a year.

A recent prize being hyped was a modern four bedroom home in Rangiora, which McIlroy-Jones described in one promotional video as “life changing”.

“You could own this house for $20 … why not give it a crack?”

It was valued at around $900,000, with its former owners asking for over $910,000, according to a real estate listing still online.

As with the car “give aways”, the winner - which was expected to be drawn in early August - could opt to take the asset or a cash offer of $700,000.

All of that was now on pause.

Last week, according to a video posted to the company’s Instagram, government officials had seized all of his company’s assets and had frozen the bank account.

“They think we’re running an illegal gambling blah blah blah [sic],” he said.

He said there were no charges laid.