It is alleged that the defendants made $11,125,466.65 in one year from selling illegal lotteries online.
Prizes included expensive cars and boats.
In a statement, the Department of Home Affairs (DIA) said that under the Gambling Act 2003, prizes above $5,000 can only be awarded by a non-profit organization for authorized purposes and a Class 3 gambling license is required.
This was to “ensure the integrity of the operation and the protection of participants”.
Following a referral from the department, police took action against the accused in the High Court, the statement said.
DIA gaming director Vicki Scott said: “Our strict licensing requirements are there for a reason. We will not hesitate to respond strongly if we see cases of illegal gambling, such as unlicensed online lotteries.
“We have no tolerance for those who want to make a profit by circumventing the rules.”
The man and his company are accused of committing illegal gambling, promoting illegal gambling and making a monetary profit from illegal gambling under the Gambling Act 2003 (the Act).
They appeared in Christchurch District Court this afternoon.