New Zealand Prohibits Credit Card Usage for Gambling

New Restrictions on Gambling Payments

New Zealand has taken a significant step by banning the use of credit cards for gambling. This move aims to prevent the indirect use of credit, such as depositing via e-wallets funded initially by credit cards, to support gambling activities.

The Upcoming Gambling Market and Regulations

The country is preparing to introduce up to 15 online gambling operators, expected to launch by the end of next year. The ban on credit card payments is part of a wider initiative to establish a robust legal framework that prioritizes consumer protection.

Economic Expectations and License Sales

The government anticipates generating around NZD 44 million (approximately USD 25 million) from license sales, in addition to revenue from taxes imposed on the new gambling sector.

Government Support and Consumer Protection

Brooke van Velden, the Internal Affairs Minister, expressed strong backing for the credit card ban, emphasizing the importance of safeguarding players from spending beyond their means.

Legislative Progress and Taxation Details

Recently, the Governance and Administration Committee approved the Online Casino Bill, advancing the legal process. Meanwhile, discussions continue on finer details.

In October, the government announced an increase in the tax rate for online gambling operators from an initially proposed amount to 16% of revenue, reflecting a 4% rise. It remains uncertain whether all 15 available licenses will be acquired by operators.

Challenges Facing the Regulated Market

Despite the modest tax rate aimed at supporting local operators, the legal market faces competition from unregulated operators, which continue to attract New Zealand players due to the absence of established licensed alternatives.