New Zealand Moves to Ban Credit Cards as Online Casino Regulation Takes Shape

As New Zealand moves closer to legalising online casino gambling, the government has confirmed that credit cards will be excluded as an approved online casino payment method under the country’s forthcoming licensing regime. The restriction will be set out in regulations supporting the Online Casino Bill and will apply to all operators granted licences under the new framework.

The payment rule is being finalised alongside broader regulatory settings as lawmakers progress the bill through its remaining parliamentary stages. Once the licensed market launches, New Zealand online casinos operating legally will be required to accept deposits only through permitted non-credit funding methods.

Payment Rules Finalised Alongside Licensing Conditions

Rather than being introduced as a standalone reform, the credit card ban is being built into the foundations of the new regulatory model. Officials have framed the restriction as part of a broader effort to ensure that consumer safeguards are established at the outset of the legal market.

The ban is expected to cover both direct credit card deposits and indirect credit use, including situations where players fund digital wallets with credit cards before transferring funds to casino accounts. These details are being addressed through secondary regulations that will sit beneath the primary legislation.

Market Access Limited To A Small Number Of Operators

The Online Casino Bill proposes a regulated market structure, with the number of licences capped at 15 operators. Successful applicants will be permitted to legally offer and advertise online casino services to New Zealand customers, marking a shift away from the current reliance on offshore platforms.

The government has indicated that licence sales could raise approximately NZD 44 million. Once operational, licensed casinos would also be subject to ongoing taxation, including a 16% duty on online casino revenue following revisions agreed earlier this year.

In addition, operators would be required to contribute 4% of their gross gambling revenue to charities and community organisations, embedding social returns into the regulatory framework.

Focus On Debt Prevention Shapes Policy Design

The exclusion of credit cards reflects concern within government about gambling-related debt and the role that borrowed funds can play in escalating financial harm. By restricting access to credit-based payments, regulators aim to reduce the risk of players spending beyond their available means during online play.

Australia’s Experience Offers Early Insight

Similar legislation was introduced in Australia in June last year, when Australian online gambling sites were prohibited from accepting credit cards. Subsequent analysis showed a modest decline in online gambling activity, largely linked to the inconvenience of changing payment methods rather than a heavy reliance on credit-funded betting.

The findings suggest that credit card bans may reduce participation among casual users, while more regular gamblers tend to switch to alternative payment options with limited disruption.

Offshore Competition Remains Unresolved

While licensed operators will face strict payment and compliance requirements, offshore gambling websites continue to operate outside New Zealand’s direct regulatory reach. These sites already attract local players and often offer fewer restrictions on funding methods.

The government has indicated that more decisive action against unlicensed operators will accompany the rollout of the regulated market, though specific enforcement tools have not yet been detailed publicly. How effectively offshore activity can be curtailed is expected to play a significant role in the success of the new framework.

Some consumer advocates have welcomed the credit card restriction but caution that close monitoring of alternative payment methods will be essential. Without adequate oversight, players may migrate to other funding options that replicate credit-based spending.

As regulatory details continue to be finalised, the credit card ban stands out as a defining feature of New Zealand’s planned online casino market. Its practical impact will depend not only on compliance by licensed operators, but also on the government’s ability to manage offshore competition and enforce the new rules in practice.