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New Zealand has banned the use of credit cards for gambling, positioning the move as a frontline harm-prevention measure as the country prepares to introduce a regulated online casino sector. The restriction is meant to reduce the risk of players gambling with borrowed money and accumulating unmanageable debt.

The ban arrives alongside legislation that would allow up to 15 licensed online casino operators to enter the market, with the government aiming to shift consumers away from offshore sites and into a framework with enforceable safeguards.

Ban targets credit-fueled gambling, including e-wallet “workarounds”

The prohibition is expected to go beyond straightforward card transactions and address indirect routes that can still rely on credit such as depositing via digital wallets that were topped up using a credit card. Regulators in multiple jurisdictions have moved in a similar direction, arguing that limiting access to borrowed funds can reduce the intensity of harm.

In practical terms, the change means licensed operators will need payment systems designed to block credit card deposits and detect roundabout credit use, while directing players toward debit-based or bank-funded methods.

Part of a broader overhaul to license online casinos

The credit card ban is being introduced as New Zealand builds a new licensing regime for online casino gambling, designed to bring operators under local rules and strengthen consumer protections. Officials have framed the reforms as a way to “channel” players away from offshore sites and into a regulated market where standards such as safer-gambling tools and compliance requirements can be enforced.

Alongside harm-minimisation measures, the government is also shaping the commercial settings of the market, including how licences are issued and how gambling activity will be monitored. The success of the policy, regulators say, will depend not only on the new payment restrictions but also on how effectively New Zealand can limit the reach of unlicensed providers once the legal market opens.

Source: https://www.gamblingnews.com/news/new-zealand-outlaws-credit-cards-for-gambling/