By LOUISA CLEAVE
New Zealand punters thinking of spending $25,000 to run an online casino should seek legal advice before taking the gamble, warns Internal Affairs.
The department is investigating a promotion by overseas company Casino Slot Club to buy a stake in its gambling scheme.
Internal Affairs says it is illegal
to organise, promote, manage or conduct an online casino in New Zealand.
Franchisees would be open to investigation and prosecution.
At least one person has taken up the offer but only afterwards approached Internal Affairs to ask if it was actually legal.
The Herald has found Casino Slot Club advertising on a New Zealand website that lists legitimate companies, properties and franchises for sale.
The ad page, which has received 206 visitors, gives an email contact, and an 0800 number which was not active yesterday.
Keith Manch, head of gaming and censorship regulation at Internal Affairs, said Casino Slot Club was the trading name of a Malta-based company, which has internet gambling computers in Vanuatu and a sales team in Australia.
The company's promotional material incorrectly states that New Zealanders "assume absolutely no legal or financial risk".
Mr Manch said anyone considering the offer should know that he or she was likely to be breaking the law.
The TAB runs a legitimate on-line betting operation and from next year the Lotteries Commission will be allowed to sell products on-line.
No other person or organisation has, or will be able to get, a licence under new gaming laws.
The law
* At present, penalties for running illegal games of chance, including online gambling, include fines of up to $4000 for an individual or a jail term of up to three months, and fines of up to $12,000 for an organisation.
* Under the Gambling Act 2003, most of which will come into force by the middle of next year, penalties will increase up to $20,000 for an individual (or a jail term of up to one year), and fines of up to $50,000 for an organisation.
* The act also prohibits advertising of overseas gambling. The penalty is a fine of up to $10,000.
