New Zealand Plans Credit Card Ban Under Online Casino Bill

New Zealand’s government is moving to prohibit the use of credit cards for online casino gambling as part of a broader regulatory framework designed to legalise and oversee the sector. The restriction is included in the proposed Online Casino Bill, which would allow a limited number of operators to enter the market under a formal licensing regime.

Under the bill, up to 15 online casino licences would be issued, permitting operators to legally promote and offer their services in New Zealand from late next year. The legislation remains under parliamentary consideration, with further debate expected before the end of the year.

The proposed credit card ban has emerged as one of the most significant policy elements within the bill. Internal Affairs Minister Brooke van Velden confirmed that the Cabinet has agreed to prevent credit cards from being used to fund online gambling accounts. The decision was not formally announced at the time it was agreed and became public as the bill progressed through Parliament.

Harm reduction cited as primary motivation

According to van Velden, the restriction is being incorporated into supporting regulations and is intended to reduce the risk of gambling-related debt. She explained the rationale behind the policy by saying:

“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.

The government has framed the measure as a compromise aimed at addressing concerns raised during the legislative process. Remaining votes on the bill are expected to be conducted as a conscience vote, allowing Members of Parliament to decide independently rather than along party lines. Officials believe the credit card ban may help secure broader support among undecided lawmakers.

Concerns over market attractiveness

While the government expects the licensing framework to generate substantial revenue, questions have been raised about whether the payment restriction could deter prospective operators. Officials have projected that licence sales could raise up to NZ$44 million.

Some stakeholders have expressed doubt over how appealing the market will be without access to credit card payments. Pub Charity managing director Martin Cheer, who previously opposed the bill during its select committee review, questioned whether operators would accept the restriction and raised concerns about enforcement.

The issue has highlighted broader uncertainty around how payment limitations may influence player behaviour and whether alternative deposit methods would adequately replace credit card use.

Revenue allocation and community funding

The credit card proposal follows earlier amendments to the bill that introduced additional financial obligations for licensed operators. Under the current framework, online casinos would be required to return 4% of their gross gambling revenue to charities and community organisations. Gross gambling revenue is defined as total stakes minus payouts.

The bill also stipulates an increase in gambling duty to 16% of revenue. One quarter of the online gambling duty would be distributed by the Commissioner of Inland Revenue to the Lottery Grants Board, which would then allocate the funds.

The government has positioned these measures as part of an effort to balance the introduction of a regulated online casino market with safeguards intended to limit social harm and ensure community benefit. As parliamentary scrutiny continues, the final version of the Online Casino Bill will determine how New Zealand opens its online casino sector and enforces consumer protection measures.

Source:

New Zealand Moves to Bar Credit Cards for Online Casinos, LCB.org, December 24, 2025