New Zealand’s government is moving toward a regulatory framework that would prevent online casinos from accepting credit card payments, a step officials frame as a safeguard against gambling-related debt. The proposal forms part of the wider Online Casino Bill, which is progressing through Parliament and is intended to establish a licensed online casino market by late 2026.
Under the planned system, up to 15 operators would receive licenses to offer online casino services legally in New Zealand. While the licensing structure aims to bring oversight and revenue to a sector that currently operates largely offshore, the proposed restriction on credit card deposits has become a central point of debate as lawmakers consider the bill’s final shape.
Credit card ban positioned as a key concession
The decision to exclude credit cards from approved payment methods was confirmed by Internal Affairs Minister Brooke van Velden during discussions around the bill. According to officials, the measure represents the most substantial concession offered so far to build broader parliamentary support for the legislation.
Government estimates suggest that license sales could generate up to NZ$44 million in revenue. Even so, questions have emerged about how appealing those licenses may be to operators if common payment methods are restricted. Some industry observers argue that payment flexibility plays a major role in player acquisition and retention, which could affect the overall commercial value of the market.
The credit card proposal follows earlier changes to the regulatory package. Those adjustments included lifting gambling duty to 16 percent of revenue, directing four percent of profits back to communities, and requiring the Commissioner of Inland Revenue to allocate 25 percent of online gambling duty to the Lottery Grants Board for distribution.
Van Velden linked the credit card restriction directly to concerns about financial harm. Speaking about the rationale behind the proposal, she said: “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.
Parliamentary debate and mixed reactions
The Online Casino Bill remains under consideration in Parliament, with further debate expected before the end of the year. The government has indicated that lawmakers will have a free vote, underscoring the lack of unanimous backing across political lines.
While ministers describe the credit card ban as a protective measure, reactions outside government have been divided. Some critics question whether the restriction will achieve its stated goals or simply shift player behavior toward other payment options. Martin Cheer, managing director of Pub Charity, raised doubts about both enforcement and practicality, remarking that “nobody does bank transfers”.
Such comments reflect broader concerns that limiting one payment method may not substantially change gambling behavior, particularly if players can easily access alternatives. Others warn that restrictions could unintentionally encourage some players to seek offshore platforms that fall outside New Zealand’s regulatory reach.
Alignment with overseas policy trends
New Zealand’s approach mirrors recent developments in Australia, where authorities moved to ban credit cards and certain digital payment methods for online gambling in mid-2024. That reform brought online wagering into line with long-standing rules applied to land-based venues, with penalties for non-compliance reaching AU$247,500.
Australian policymakers justified their changes by pointing to the ease with which credit can fuel gambling losses and the associated risk of debt accumulation. Consumer advocates and banking groups supported the reforms, though critics noted that players could still fund gambling through debit accounts or unregulated offshore sites.
In New Zealand, ministers argue that acting now is necessary as the country prepares to open a regulated online casino market for the first time. Details of how the credit card ban would operate in practice are still being drafted, and further adjustments may emerge as parliamentary negotiations continue.
What remains clear is that payment controls have become a defining feature of the proposed framework. As the bill advances, lawmakers must balance harm-prevention goals with the commercial realities of attracting licensed operators into a tightly regulated environment.
Source:
Online casinos won’t be able to accept credit cards, thepost.co.nz, December 16, 2025
