New Zealand is joining the growing list of jurisdictions to have outlawed the use of credit cards for gambling. Such measures usually target roundabout ways of leveraging credit in order to fund gambling habits, including the deposits through e-wallets, which have been topped up from a credit card in the first place.
Credit Cards to Be Banned at Launch of Gambling Industry
Right now, New Zealand is preparing to welcome up to 15 online gambling operators that should launch by the end of next year, with the credit card ban part of a broader political consensus to expedite the legal framework while introducing important safeguards to protect consumers.
The government is hoping to raise as much as NZD 44 million ($25 million) from the sale of licenses alone, with more to come from taxing the newly-fledged gambling industry.
New Zealand’s internal affairs minister, Brooke van Velden, confirmed his support for the measure, arguing that it was an important step in ensuring that consumers are protected and do not end up spending money they could not afford on gambling.
Earlier this month, the Governance and Administration Committee backed the Online Casino Bill, clearing another hurdle for the passage of the law. In the meantime, details remain to be thrashed out.
In October, the government confirmed that it would tax online gambling operators 4% higher than initially intended, bringing the total taxable levy to 16% of revenue. It is not yet clear if all of the 15 licenses on offer will be scooped up by companies.
The fairly small tax rate, however, could – for the time being – make onshore gambling operators compete against the illegal market, which continues to target New Zealanders in the absence of a legitimate alternative.