As the New Zealand government advances its plans to regulate online casinos, one measure is drawing particular attention: a ban on credit card payments for online gambling.
The restriction, confirmed by Minister of Internal Affairs Brooke van Velden, will be built into the Online Casino Bill, the legislation currently working its way through Parliament. If passed, the bill will establish a licensed and tightly regulated online casino market by late 2026, with the credit card ban positioned as a core safeguard against gambling-related debt.
A decisive move to prevent harm
Van Velden framed the restriction as a direct response to concerns around personal debt and the risk of financial harm linked to 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 credit card ban, now being drafted into supporting regulations, would prohibit licensed online casinos from accepting credit cards as a funding method. This includes indirect usage, such as topping up e-wallets via credit.
A key compromise in the legislative process
Although the government had not initially announced the policy publicly, it has since been described as one of the most significant concessions offered to secure broader political support for the bill. The Online Casino Bill is set to proceed through Parliament with a conscience vote, giving Members of Parliament the freedom to vote individually rather than along party lines.
Cabinet ministers have also confirmed that the restriction will apply from the moment the new licensing regime takes effect, expected in the second half of 2026.
Industry reaction: balancing safety and practicality
While consumer protection advocates have broadly welcomed the credit card ban, some industry figures and stakeholders have raised concerns about its effectiveness — and whether it could undermine the commercial viability of the regulated market.
Martin Cheer, managing director of Pub Charity and an outspoken critic of the bill, questioned both the practicality of enforcement and the appeal of the new system to potential operators.
“Nobody does bank transfers,” he said, suggesting the ban could lead players to seek out alternative (or unregulated) options.
Others in the industry warn that payment flexibility plays a major role in player retention and acquisition — especially during market entry phases.
Financial and market implications
The government expects the licensing process to generate up to NZ$44 million in upfront revenue. But that estimate may face pressure if major operators view the payment restrictions as a barrier to entering the market.
The credit card ban is also just one part of a broader package of financial requirements and community contributions, including:
- A 16% gambling duty (recently increased from 12%)
- A 1.24% Problem Gambling Levy
- A requirement for operators to return 4% of gross gambling revenue to community causes
- Allocation of 25% of online gambling duty to the Lottery Grants Board
Together, these measures reflect the government’s intent to balance market liberalisation with public benefit and harm reduction.
In line with international trends
New Zealand’s credit card ban mirrors similar moves overseas — most notably in Australia, where the government banned credit card payments for online gambling in 2024. That change aligned online gambling rules with land-based restrictions, backed by banking associations and public health advocates.
As in Australia, New Zealand’s approach is grounded in the belief that credit-based gambling increases risk and should not be permitted in a regulated environment.
What remains unclear
Despite the policy direction, important details remain under development:
- Which alternative payment methods will be allowed (e.g. debit cards, bank transfers, e-wallets)?
- How will enforcement work — especially regarding workarounds, like topping up third-party wallets with credit cards?
- What penalties will apply to licensed operators who fail to comply?
- Will unlicensed offshore sites become more attractive if licensed sites face stricter rules?
Government officials have said that enforcement tools will be paired with other regulatory measures, including targeting illegal offshore operators, but full details have not yet been released.
Editorial note from Legal Kiwi Casinos
In our view, the credit card ban sends the right signal about the kind of market New Zealand wants to build: one that prioritises player safety over convenience. But its success will depend on realistic enforcement, payment alternatives that players will actually use, and ongoing oversight to prevent circumvention.
We also believe this restriction should be paired with clear operator guidance and consumer education, so the transition to a regulated market doesn’t drive players elsewhere.
What’s next?
The Online Casino Bill is expected to return to Parliament for further debate before the end of the year. Until then, the final wording of the regulations — including payment rules — will continue to take shape.
Licensed operators are likely to begin rolling out services from mid-to-late 2026, assuming the legislation is passed in its current or amended form.
We’ll continue tracking every development. Stay tuned to Legal Kiwi Casinos for updates as this key legislation evolves — and how it may reshape the online gambling experience for New Zealanders.
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