A former gambling trust administrator has been sentenced to home detention after misusing more than $1.7 million in proceeds that should have gone to the community.

Daniel Joseph Clifford, 58, a company director, was sentenced to nine months' home detention and 200 hours' community work when he appeared in the Manukau District Court yesterday.

He had previously pleaded guilty to a representative charge of dishonestly using a document.

The offending occurred while he was the administrator of a former gambling society, Actives Charitable Trust, and the trustee of the Counties Manukau Institute of Rugby and Sport (CMIRS).

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According to an agreed summary of facts, Clifford manipulated the financial affairs of both CMIRS and Actives to to conceal the latter's inability to distribute the legally required minimum of 37.12 per cent of net gaming machine proceeds to the community.

The society also paid out $1.729m in "loan repayments" to School Ltd, a company of which Clifford was sole director, according to the Department of Internal Affairs (DIA).

It was set up to promote school-related projects including sport and has since been struck off the Companies Register.

The Department of Internal Affairs said it was difficult to trace the extent to which Clifford personally benefited from the various transactions but it sought reparation of the $1.729m of the 'loan repayments' - gaming machine proceeds that should have gone to the community.

The court could not order reparation as the gambling society had been wound up, but Clifford donated $5000 to each of the four charities which had unsuccessfully applied for funds from the gambling society from 2007 to 2008.

DIA director of gambling compliance Debbie Despard said gambling societies held gaming machine proceeds in trusts for distribution to the community, and the department was pleased they had been able to hold Clifford accountable.