New Zealand Plans Credit Card Ban for Online Casinos

New Zealand’s government has moved to prohibit credit card payments for online casino gambling as part of a broader framework that would legalize and regulate the sector. The proposed restriction appears in the Online Casino Bill, which is currently advancing through Parliament and would allow a limited number of operators to offer online casino services legally from late next year.

Under the proposed legislation, up to 15 online casino operators could receive licenses and promote their services within New Zealand. The bill remains subject to further parliamentary debate, with additional stages expected before the end of the year. As lawmakers continue deliberations, the credit card ban has emerged as one of the most significant policy decisions included in the framework.

Internal Affairs Minister Brooke van Velden confirmed that the Cabinet has agreed to block the use of credit cards as a funding option for online gambling accounts. The decision had not been formally announced before reports surfaced during the bill’s progression. Government officials have since characterized the measure as a key compromise designed to secure broader political support for the legislation.

According to van Velden, the prohibition is being incorporated into supporting regulations connected to the bill. She said the policy focuses on reducing the likelihood that online casino players will accumulate debt through gambling activity.

“The reason behind this is because I did not want to end up with people who were using online gambling making their way into further debt and getting themselves into a bit of a cycle,” she said.

Government representatives have framed the ban as a harm reduction tool rather than a restriction on market participation. Officials believe preventing credit-based gambling may limit financial risk for players as the country transitions toward a regulated online casino environment.

The government has also indicated that the remaining votes on the Online Casino Bill will take place as a conscience vote. This approach allows Members of Parliament to vote independently rather than follow party positions. Ministers have suggested that the inclusion of the credit card ban could help address concerns raised by undecided lawmakers during earlier stages of the bill.

While the government expects the licensing process to produce meaningful revenue, some stakeholders have questioned whether the proposed payment restrictions could affect the appeal of the New Zealand market. Officials have forecast that license sales could generate as much as NZ$44 million.

Critics of the bill have expressed doubts about whether operators would accept the limitations imposed by the framework. Pub Charity managing director Martin Cheer, who previously opposed the legislation during its select committee review, raised concerns about enforcement and compliance. He questioned whether online casino operators would fully adhere to the credit card restriction once licensed.

The debate reflects broader uncertainty about how players might respond to the removal of credit cards as a deposit option. Some observers have suggested that alternative payment methods could replace credit cards without significantly altering gambling behavior, while others believe the restriction may influence spending patterns.

The credit card ban follows earlier amendments to the proposed regulatory model that focus on revenue distribution and community funding. Under the current framework, licensed online casino operators would be required to contribute a portion of their earnings to public causes.

Specifically, operators must transfer 4% of their gross gambling revenue to charities and community organizations. Gross gambling revenue is defined in the bill as total stakes minus payouts. These contributions would form part of the government’s effort to ensure that legalized online gambling delivers financial returns beyond operator profits.

In addition, the bill proposes an increase in gambling duty to 16% of revenue. Of the total online gambling duty collected, 25% would be allocated by the Commissioner of Inland Revenue to the Lottery Grants Board, which would then distribute the funds to approved recipients.

Government officials have said these measures aim to balance the introduction of licensed online casinos with safeguards designed to address social risks and deliver financial benefits to the wider community. As the bill continues through Parliament, lawmakers will determine whether the final legislation strikes that balance effectively.

Source:

““, lcb.org, December 24 2025