As New Zealand works toward establishing a regulated online casino sector, one policy choice is drawing particular attention: licensed operators will be barred from accepting credit card payments from players.
The restriction forms part of the government’s Online Casino Bill, which is intended to create a legal framework for digital casino gambling for the first time. The legislation would permit a capped market of up to 15 licensed online casinos, with successful applicants allowed to advertise and operate legally once the regime takes effect, currently expected from late next year or by late 2026.
Internal Affairs Minister Brooke van Velden confirmed that the Cabinet has approved the credit card ban, which will be written into the regulations accompanying the bill. She said online casinos would be prevented “from taking customer funds via credit cards,” a move she linked directly to concerns about gambling-related debt.
“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,” van Velden said.
Payment Limits Shape Regulatory Approach
The decision had not been publicly announced before Cabinet approval and stands out as the most substantial adjustment made to the bill so far. The government is seeking to strengthen support among MPs as the legislation moves through its remaining parliamentary stages.
Lawmakers are expected to be granted a conscience vote, allowing them to decide independently rather than along party lines. In that context, the credit card ban is seen as a key signal that consumer protection will play a central role in the final framework.
Government officials have estimated that licence sales alone could raise up to NZ$44 million (US$25 million). However, the tighter payment rules have prompted questions about how attractive the licences will be to prospective operators.
Martin Cheer, managing director of Pub Charity, who opposed the bill during its select committee review, expressed doubts about both demand and enforcement. He questioned whether operators would accept the restriction in practice. “The proof will be in the pudding,” he said. “Nobody does bank transfers.”
Financial Obligations For Licensed Casinos
The payment ban sits alongside a set of financial requirements already attached to the proposed regime. Earlier revisions to the bill introduced a mandatory contribution from licensed online casinos to charities and community groups.
Under those provisions, operators would be required to transfer 4% of their gross gambling revenue, defined as the amount retained after paying out winnings. The government has also agreed to lift gambling duty to 16% of revenue as part of the same package of changes.
Further allocations are specified in the bill, with the Commissioner of Inland Revenue required to pass on 25% of online gambling duty to the Lottery Grants Board for distribution.
Together, these measures outline how revenue from online casino activity would be channeled back into public and community purposes while the state retains oversight of market entry and payment methods.
The Online Casino Bill is expected to face further debate before the end of the year.
Source:
“Online casinos won’t be able to accept credit cards”, thepost.co.nz. December 16, 2025
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