SmileLines Violated New Zealand Gambling Laws, Rules Court

Posted: September 27, 2010

Updated: October 4, 2017

In an appeal to the Auckland District Court, the lottery results-centered webpage provider SmileLines has lost its effort to overturn the

In an appeal to the Auckland District Court, the lottery results-centered webpage provider SmileLines has lost its effort to overturn the NZ $5,000 (US $3,670) fine recently imposed on the company by the New Zealand Department of Internal Affairs.

The SmileLines webpage was found in violation of New Zealand gambling laws, as its site sported some 16 links to foreign-based sportsbooks in addition to information about lotto results from the New Zealand Lotteries Commission, the government-approved body for distribution of lotto gaming.

Ruling judge in the case, Emma Aitken, was quoted in the New Zealand Business Day as stating “There was clearly a deliberate flouting of the law, certainly once the company had been notified by the Department that they were breaching the law.” Aitken also said that she had no doubt that financial gain was the sole motive for posting the links.

SmileLines websites reportedly draw 250,000 monthly page views and 64,000 unique visitors, while director/owner Denis McDonald reportedly draws a NZ $110,000 ($80,800) salary from the company – all numbers which worked against McDonald’s defense that SmileLines couldn’t afford the $5,000 fine.

New Zealand gambling laws are somewhat liberalized, but a license is required of all foreign-based interests wishing to establish internet poker, sportsbooks or an online casino in New Zealand.

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