New Zealand has approved a ban on the use of credit cards for gambling. This restriction is a central feature of its regulatory framework for the country’s forthcoming online casino market. The measure is intended to strengthen player protection as New Zealand prepares to license online operators for the first time.
Credit Card Ban Integrated Into Market Launch
The restriction will take effect from the outset of the regulated online gambling market. This market is expected to open to up to 15 licensed operators by the end of next year. Lawmakers have framed the ban as a foundational safeguard rather than a later corrective measure.
The prohibition extends beyond direct card payments and is designed to block indirect use of credit. This includes deposits made through e-wallets funded by credit cards. It ensures that players cannot gamble with borrowed money, regardless of the payment method used.
Internal Affairs Minister Brooke van Velden has endorsed the measure. She argues that restricting access to credit is essential to prevent players from spending beyond their financial means.
Licensing Revenue, Taxation, and Market Impact
The government anticipates raising up to NZD 44 million from license fees alone. Additional revenue will be generated through ongoing taxation of licensed operators. In October, authorities confirmed that online gambling would be taxed at a higher level than initially planned. The levy is set at 16% of operator revenue.
The Governance and Administration Committee recently endorsed the Online Casino Bill, allowing the legislation to advance further through parliament. Several implementation details, including final licensing conditions, remain under discussion.
It is not yet clear whether all available licenses will be taken up. While the tax rate is relatively modest by international standards, licensed operators will still face competition from offshore platforms targeting New Zealand players. The government is betting that a regulated market combined with consumer protections, such as the credit card ban, will improve channelization over time.
