The Department of Internal Affairs is investigating allegations TAB staff have tried to induce local pubs with gaming machines to switch allegiance to racing friendly gambling trusts.
At least four employees of the New Zealand Racing Board, including regional managers, a Rotorua gambling trust, First Sovereign and the Waikato Racing Club are being investigated.
Internal Affairs national manager of investigations Geoff Owen says there is some evidence local hotels were approached about refits provided they switch trusts to one aligned with the racing industry.
Mr Owen says it is illegal to offer such inducements or make offers with conditions attached.
He says the department was alerted to the issue eight months ago.
