A Department of Internal Affairs (DIA) investigation has found what it is claiming is a "network of corruption" in Hawke's Bay that allegedly involves scheming between class four gambling venue operators, corporate societies, and grant recipients.
Class four gambling is made up of gaming machines, or pokies, in clubs and pubs.
Eight have been charged with a range of offences under the Gambling Act 2003 and Crimes Act 1961.
The charges allege class four gambling grant funds were misappropriated, gaming machine proceeds were stolen, and benefits were offered to secure pokie venues with improper conditions.
The defendants, who managed several community organisations and operated pokies, are alleged to have "abused their positions to fraudulently obtain or misappropriate hundreds of thousands of dollars in grant funding and other benefits".
Vicki Scott, the Gambling Director for DIA, said the defendants broke the law with full knowledge of what they were doing.
"They ultimately take away grants from compliant and honest organisations and give the Gambling Sector a bad name," she said
Three of those charged appeared at the Napier district court on Thursday.
One of those in court pled not guilty while the other two were remanded without plea and they are due to appear in court over the coming months.
The five other defendants had their matters adjourned until February.
