New Zealand Moves to Bar Credit Cards for Online Casinos

Proposed framework in New Zealand for regulating online casinos will prohibit operators from accepting credit card payments, a move the government says is aimed at reducing gambling-related harm as the sector prepares for legalisation.

The restriction forms part of the Online Casino Bill, legislation that would permit up to 15 online casino operators to receive licences and legally promote their services from late next year. The government continues to work through the bill’s remaining parliamentary stages, with further debate expected before the end of the year.

Internal Affairs Minister Brooke van Velden confirmed that the Cabinet has agreed to block the use of credit cards as a funding method for online gambling accounts. The decision had not been publicly announced prior to reports emerging during the bill’s progression and is being described as one of the most notable compromises offered so far to secure broader political backing.

Credit Card Restriction Framed As Harm Reduction Step

According to van Velden, the ban is currently being written into supporting regulations. She said the policy is designed to limit the risk of gamblers accumulating debt through online casino play.

“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 indicated that remaining votes on the bill will be conducted as a conscience vote, allowing Members of Parliament to decide independently rather than along party lines. Officials believe the credit card ban represents a meaningful adjustment that may help address concerns raised by undecided lawmakers.

Questions Raised Over Licence Appeal

While the government expects the licensing process to generate significant revenue, the credit card restriction has prompted doubts from some stakeholders about how attractive the New Zealand market will be to potential operators. Officials have forecast proceeds of up to NZ$44 million from licence sales.

One of the bill’s critics, Pub Charity managing director Martin Cheer, questioned whether online casinos would accept the payment limitation in practice. Cheer had previously lobbied against the bill during its select committee review and expressed scepticism about enforcement.

The concern reflects broader uncertainty about how payment rules would shape consumer behaviour and whether alternative deposit methods would offset the removal of credit cards.

Revenue Distribution And Community Funding Rules

The credit card ban follows earlier amendments to the proposed regulatory structure. Under those changes, licensed online casinos would be required to return a portion of their revenue to public causes. Operators must transfer 4% of their gross gambling revenue, defined as total stakes minus payouts, to charities and community organisations.

In addition, gambling duty under the framework would rise to 16% of revenue. A quarter of online gambling duty would be allocated by the Commissioner of Inland Revenue to the Lottery Grants Board, which would then distribute the funds.

The government says these measures are intended to balance market entry for online casinos with safeguards and financial returns for the wider community. As parliamentary debate continues, the final shape of the bill will determine how New Zealand opens its online casino sector while attempting to limit social harm.

Source:

“Online casinos won’t be able to accept credit cards”, thepost.co.nz, December 16, 2025