House Auction Ruled Online Gambling

Further, because the sale would take place on the Internet, Despard said, "It is also online gambling, which the Act defines as ?remote interactive gambling'."

A creative way for a couple in New Zealand to sell their home during this buyer's market has been ruled illegal gambling by the Internal Affairs branch of the government. Brad and Janice Maxwell decided to sell the house by auction on the Internet, giving the bidder with the lowest bid not duplicated by another particpant the deed.

Potential buyers would be charged $100 for a seat at the auction, and then bids would be taken from one cent to a thousand dollars. But Debbie Despard, gambling compliance manager with Internal Affairs, said the process violated the Gambling Act of 2003 in several ways.

Despard said the element of chance, coupled with paid participation, made the auction a gambling situation. Further, because the sale would take place on the Internet, Despard said, "It is also online gambling, which the Act defines as ‘remote interactive gambling'."

The $600,000 property might have belonged to someone for a maximum of $1100, but government threats have stopped the auction from occurring. Maxwell, a real estate sale agent, had devised a new technique almost guaranteed to boost home sales, stimulate the economy, and offer entetainment as well.

But Despard said anyone participating would be commiting a criminal offense, and the legality of the sale would also be questionable, as it might fall under the Illegal Contracts Act. Governments everywhere seem to love quashing gambling almost as much as they love collecting taxes.