The New Zealand government has prohibited the use of credit cards for gambling. Officials explain that this is a key component of the regulatory framework, which will limit the financial burden on consumers. The decision was reported from the Governance and Administration Committee’s recommendation on the Online Casino Bill. It is part of the Kiwi government’s wider initiative to protect consumer interests before the launch of the regulated online gambling market in 2026.
A Brief Overview of New Zealand’s Ban on Gambling Using Credit Cards
- Kiwi authorities have ruled in favour of prohibiting online gambling using credit cards. The onus is on the operators to ensure that consumers do not deposit funds into their casino accounts using credit cards.
- The scope of the ban extends beyond credit cards. It aims to block all types of gambling on credit, including e-wallets funded by credit cards, ensuring that players do not gamble with borrowed funds.
- Internal Affairs Minister Brooke van Velden argued that the convenience of credit card payments enables vulnerable individuals to gamble beyond their means, creating a cycle of debt.
Ban on Credit Card Gambling to Protect Consumer Interests
The New Zealand government is preparing to ban gambling on credit as the nation prepares to welcome a regulated online gambling market in 2026. Authorities are focusing on banning the use of credit cards for gambling transactions and making operators accountable for violations.
The ruling was first published in a Select Committee report and later announced by Brooke van Velden, New Zealand’s Minister for Internal Affairs. The bill is currently under parliamentary scrutiny and is being thoroughly debated following criticism regarding key regulatory details missing from the bill, including the terms of how licensing should work.
New Zealand’s Online Casino Bill marks the foundation of a regulated online gambling market with 15 licensed operators. The licence application window has been open since December 1, 2025, while the market launch is slated for the second half of 2026. Officials are expected to publish the market regulations by July 2026.
The scope of the prohibition extends beyond credit cards. The government is aiming to ban all types of gambling on credit, including e-wallets funded by credit cards and more. The goal is to prevent consumers from gambling with borrowed funds, regardless of the source of said funds.
Minister Brooke van Velden has publicly supported the government’s decision. She explained that restricting access to credit cards for gambling payments reduces the risk of players falling into a cycle of debt. The convenience of using credit cards for gambling-related payments makes it easier for vulnerable individuals to gamble beyond their financial means.
Speaking to the media, Van Velden said:
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.
Reformed Tax Brackets Announced to Fund Community Sports Initiatives
New Zealand’s Online Casino Gambling Bill received stiff opposition from regional sports bodies following the lack of provisions for community returns from gambling taxes. Historically, local sports organisations across the country have relied on contributions from gambling companies to fund their daily operations. The government’s initial draft bill did not guarantee community tax returns from licensed operations.
Authorities soon announced a gambling tax hike from 12% to 16%, with the extra 4% revenue being reserved for local communities, including sports bodies. Officials expect to raise between €4.9 to €9.9 million in additional revenue annually from the tax increase. The amount will be earmarked for the development of local communities.
Earlier this month, New Zealand’s Governance and Administration Committee approved the Online Casino Gambling Bill, clearing a major hurdle in the path for the law to take effect. However, support hasn’t been unanimous. Martin Cheer, the Managing Director at Pub Charity, has been a vocal critic of the bill. He expressed scepticism about whether casino operators would quietly accept the restrictions on credit card transactions, since most consumers use credit cards rather than bank transfers.
Cheer noted:
The proof will be in the pudding. Nobody does bank transfers.
It remains to be seen whether all 15 permits are scooped up during New Zealand’s inaugural gambling licence application window. While the tax rate is moderate compared to other regulated markets, licensed operators will face stiff competition from offshore platforms due to the lack of strict enforcement measures. By introducing market regulations and banning gambling on credit, the government hopes to improve the channelisation rate in the long run.