Over 80% of locals regularly engage in this risky activity, and the rapid evolution of the digital sector boosts user excitement. Online casinos have long remained a grey zone in the state, but the latest government updates imply significant limitations for players. Regulatory authorities are concerned about the growing number of compulsive disorders among Kiwis, and the ban on credit cards in casinos is among the upcoming updates. How will it impact the sector, and what’s the market reaction to such changes?

NZ Gambling Landscape: Current Laws and Upcoming Amendments

The iGaming sector has been developing rapidly in the country over the last two decades, but New Zealand lacked regulations. Online casinos registered in the state are prohibited, while international operators have no restrictions on entering the market. Therefore, players can take advantage of numerous gaming sites, and this entertainment has become more popular with quick technological advancements.

The growing number of users engaging in the industry and an increasing rate of people with compulsive disorders forced the government to reconsider the existing regulations and initiate changes to enhance consumer protection. The main update implies issuing licenses to in-country operators and limiting the number of gambling companies to reduce the potential harm to the population.

Credit Card Ban on Gambling Activities

Overspending is the main challenge for casino enthusiasts, and the boom in online slots and games worsens this problem. Users can reach the chosen platform, easily deposit, and use Visa to make fast withdrawals from the casino site. Credit and debit cards are the most common payment solutions in the iGaming sector: broad accessibility, safety, and convenience are what risk-seekers usually search for.

Many users prefer to borrow money from the bank when they run out of funds in online casinos. Therefore, several payment providers in New Zealand have already announced a gambling ban to prevent players from overspending and other related problems. Westpac was the first financial institution providing services to Aussies and Kiwis to announce this initiative, and others supported the trend.

The Department of Internal Affairs, the primary controlling authority, started the discussion in the summer of 2024. The government highlighted that the usage of credit cards in casinos significantly impacts players’ behaviours, and the decision to ban this payment method was approved soon. How will it affect Kiwis once the law is confirmed?

Users Will Be Able to Play Only for their Own Funds

It’s the main principle of responsible gambling – risk-seekers should only invest the money they can afford to spend and lose. Kiwis won’t be able to borrow extra cash from the bank and use it for online casinos. The regulatory authority promotes a safer approach to this entertainment, and the ban on credit cards is a part of the complex measures to prevent addiction among gamblers. Casino lovers can choose another payment solution: debit cards, e-wallets, prepaid vouchers, etc., will remain accessible.

Negative Aspects of the Credit Card Ban

At first glance, the decision to block the opportunity to borrow money seems beneficial since it will promote responsible gambling and encourage users to plan their expenses. However, some experts are sceptical about this solution and highlight its drawbacks.

Many Kiwis Will Switch to International Operators

Credit card bans in online gambling are becoming widespread in 2024. Multiple countries, including the UK, Australia, Italy, and others, have already restricted this payment method. However, it’s still legal in some jurisdictions: for instance, offshore-licensed online casinos don’t imply similar limitations. Therefore, obsessed players desiring to continue their gaming sessions can opt for these platforms.

Impact on Local Businesses

Credit card payments are convenient and simple, so many players choose them. The ban may negatively impact the operations of in-country businesses that work legally and comply with standards. Users will opt for overseas platforms, decreasing the potential profits of New Zealand iGaming operators.

Reduced Choice of Payment Options

Users prefer to have a vast selection of deposit and withdrawal options, and bans on credit cards can significantly limit their opportunities. Although iGaming companies offer multiple systems, including digital wallets, crypto, mobile payment apps, etc., bank cards remain the preferred option for millions of gamblers.

Market Response and Further Advancements

Undeniably, passionate gambling lovers are not satisfied with new restrictions from NZ regulatory authorities and will likely search for other opportunities to use credit cards in online casinos. However, the trend of promoting safer gaming and implementing restrictions for operators and players is becoming global. Blocking credit card payments is another step towards eliminating potential harms and reducing the risk of compulsive gaming disorders.

Complemented by the latest regulatory changes, this decision will provide higher transparency and consumer protection. The NZ government should concentrate on increasing user awareness about the possible negative consequences of uncontrolled casino gaming and ways to develop healthy habits in this risky pastime.

Final Words

New Zealand is now working on improving gambling regulations and making the sector safer for all parties. The ban on credit cards is only a part of the country's complex safer gaming policy. Users are not allowed to borrow money for gambling; several financial institutions have already joined the initiative. The restriction is projected to become nationwide shortly. Although many are dissatisfied with this decision, it will eventually benefit the NZ population.