The Tauranga chapter of the Filthy Few Motorcycle club is seeking money from the Department of Internal Affairs for stopping the gang from holding an annual raffle.
The Filthy Few had held a raffle at their bike and car show Metal Mania for nine years.
This year, however, police opposed the gang's application to the department to hold the raffle, because at least one of the people applying had criminal convictions. The department refused the licence.
After an appeal by the gang to the Gambling Commission, the department withdrew its decision, but too late to hold the raffle.
Filthy Few MC is now seeking an undisclosed amount in costs and the commission says it will consider the application.
Police acting unfairly - sponsor
A sponsor of the bikie gang's vehicle show says police are unfairly targeting the gang by not letting them run a legitimate raffle.
Owner of Bayride Motorcycles Lindsay Beck says the raffle has always been run openly and honestly and he has never seen any skullduggery.
Mr Beck thinks the people running the raffle are being singled out because they are gang members.
Earlier this year, the Hells Angels Nomads were also refused permission to hold a raffle. Their appeal was dismissed.