New Zealand’s government has confirmed that online casinos operating under the country’s upcoming licensing regime will be prohibited from accepting customer funds via credit cards. The restriction forms part of the Online Casino Bill, legislation intended to legalise and regulate online casino gambling while embedding consumer protection measures into the market from its launch.
Consumer Debt Concerns Drive Payment Rules
Internal Affairs Minister Brooke van Velden said Cabinet had agreed to the payment restriction during the drafting of regulations that will sit alongside the bill. The ban had not been publicly signalled before, yet it has emerged as one of the most substantial changes designed to secure broader political support as the legislation advances through Parliament. Lawmakers may be granted a conscience vote at later stages of the bill, increasing the importance of safeguards that address concerns around gambling harm.
The government expects the new framework to allow up to 15 licensed online casino operators to enter the New Zealand market from late next year. Officials have forecast that licence sales alone could generate around NZD 44 million, with additional revenue expected through ongoing taxation once the market is live.
Van Velden framed the credit card prohibition as a direct response to the risk of gamblers accumulating debt through online play. She said Cabinet had agreed to prevent online casinos “from taking customer funds via credit cards,” adding that the restriction was actively being written into regulatory requirements.
“That is something that we are currently drafting for the regulations,” 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 added.
Parliamentary discussions earlier this month moved the bill closer to becoming law, with the Governance and Administration Committee backing the legislation at a procedural stage. Officials have indicated that the credit card ban will apply from the moment the new licensing regime takes effect. The policy is also intended to address indirect borrowing, including the use of credit cards to top up e-wallets that are then used for gambling.
Market Structure and Licence Conditions
Alongside payment restrictions, the Online Casino Bill outlines a tightly controlled market structure. The government plans to cap the number of licences at 15, though it remains unclear whether all will be taken up once applications open. In addition to licence fees, licensed operators will face a 16% tax on their revenue, a rate that was increased by four percentage points during policy revisions in October.
Earlier concessions attached to the bill include a requirement for licensed online casinos to contribute 4% of their gross gambling revenue to charities and community groups. Gross gambling revenue is defined as stakes taken in minus payouts on winning bets. The government has positioned this contribution as part of a broader effort to ensure social returns from the regulated market.
Despite these measures, critics have questioned how attractive the licences will be once restrictions are fully applied. Martin Cheer, managing director of Pub Charity and a vocal opponent of the bill during select committee hearings, expressed doubt about the practical impact of the credit card ban.
“The proof will be in the pudding,” he said, as reported by The Post. “Nobody does bank transfers.”
Enforcement and Offshore Competition Risks
The effectiveness of the credit card ban is expected to hinge on enforcement, particularly given the continued presence of offshore gambling websites that target New Zealand players without local approval. Officials have signalled that restricting payment methods for licensed operators will be paired with stronger action against illegal sites, although detailed enforcement mechanisms have yet to be published.
Industry participants preparing licence applications have also raised the need for clarity around permitted payment options and compliance expectations. One executive involved in market entry planning said operators would need to adjust payment systems and customer verification processes to meet regulatory standards, while emphasising that certainty would be critical for investment decisions.
Consumer advocates and gambling-harm researchers have broadly welcomed the policy direction, arguing that credit cards have played a recurring role in enabling harmful gambling behaviour by allowing players to wager with borrowed funds. At the same time, they have warned that restrictions on cards must be accompanied by close oversight of alternative payment methods, including e-wallets and prepaid products, to prevent circumvention.
As the Online Casino Bill progresses, lawmakers are still finalising detailed rules that will shape how the market operates in practice. While the credit card ban marks a clear policy stance on consumer protection, its real-world impact will depend on how effectively the new system balances licensed competition, enforcement against illegal operators, and safeguards designed to limit gambling-related harm.
