New Zealand Bans Credit-Card Gambling Ahead of iGaming Launch
New Zealand will prohibit the use of credit cards to fund gambling as it prepares to legalise and licence online casinos.
LISTEN TO THIS ARTICLE:Parliamentary discussions this month moved the policy closer to law as part of the government's push to create a regulated online gambling market. The ban is designed to cut off a common source of borrowed funds for wagering and to prevent indirect credit use, such as topping up e-wallets with cards. Officials expect the restriction to be enforced from the moment the new licensing regime goes live.
Internal Affairs Minister Brooke van Velden has publicly backed the measure, framing it as a consumer-protection priority. "This is about ensuring New Zealanders do not gamble with money they do not have", she said. The Online Casino Bill has already cleared a procedural hurdle after the Governance and Administration Committee backed it earlier this month, but lawmakers still need to finalise detailed rules and enforcement arrangements.
Related: New Zealand iGaming Bill Passes First Parliamentary Review
What the Ban Means for Operators and Players
The legislation anticipates up to 15 licences being granted to onshore operators, with the government estimating licence sales could generate roughly NZD 44 million in one-off receipts, and additional revenues coming from ongoing taxation of operator take. Ministers raised the planned tax rate by four percentage points in October, settling on a 16% levy on operator revenue.
Industry stakeholders say a ban on credit cards will change the payments landscape for entrants. "Operators will need to redesign payment flows and customer verification processes to ensure compliance", said an executive representing firms preparing licence applications. "We support measures that protect consumers, but certainty on permitted payment methods and clear guidance from regulators are essential to make the business case to invest in the New Zealand market."
Consumer advocates and addiction specialists welcomed the move. "Credit-card access has been a recurring factor in problem gambling, enabling people to chase losses with borrowed money", said a New Zealand gambling-harm researcher. "Removing that channel can reduce acute harm, but it needs to be paired with strict controls on e-wallets, prepaid products and rapid-deposit services that can be funded indirectly by credit."
Enforcement will be key. If illicit offshore sites remain widely available, critics warn, players may simply migrate to unregulated operators that accept credit-card-funded wallets. Regulators have signalled they will pursue a two-pronged approach: restrict payment rails for licensed firms while stepping up measures to curb the illegal market, though precise enforcement mechanisms remain to be published.
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Revenue, Regulation, and Next Steps
Government projections show licence sales and taxation could provide a modest revenue stream to the public purse; whether that income materialises depends on the level of industry uptake. It is not certain that all 15 licences will be issued or taken up immediately. Smaller-than-expected participation would reduce potential tax and licence receipts and may influence how aggressively the regulator enforces compliance.
Regulatory details still to be resolved include the approved list of payment providers, mandatory anti-money-laundering checks, age-verification standards and the technical definition of what counts as credit-provided funding. "The policy intent is clear, but operational rules will determine whether the ban reduces harm or simply shifts risk elsewhere", the gambling-harm researcher added.
Operators and public-interest groups will now be watching the parliamentary timetable closely. The bill's passage, publication of licensing requirements and the regulator's guidance on payments will set the terms for when licensed online casinos can begin operating in New Zealand.
Practical Issues Regulators Will Face
Key practical challenges include policing cross-border payment flows, defining secondary payment products, and ensuring banks and payment processors have clear legal duties. Effective collaboration with the financial sector will be necessary to identify when card-funded funds are routed into gambling. How the regulator balances harm reduction with fostering a viable legal market will shape the final form of New Zealand's iGaming landscape.
RELATED TOPICS: Regulation
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