No More Credit in New ZealandPublished October 23, 2019 by Lee R
A new landscape in New Zealand includes an across-the-board ban on using credit cards to gamble.
Credit cards are getting canceled in New Zealand—for online gambling.
The Timing of the Decision
Jurisdiction gambling authority New Zealand Department of Internal Affairs (DIA) has announced said intentions ahead of Malta-based online casino operator SKYCITY Entertainment Group's launch of an online casino to join the market currently dominated by the state-run lottery and TAB system for sports betting.
The Adaptive Protection
The addition of the first major private online gambling platform apparently has the NZ government on high alert against players in the jurisdiction overspending.
With New Zealand citizens accustomed to playing real money casino games online by accessing smaller foreign-based online casinos from within the country, a New Zealand government official now suggests some online gambling law revision to “ensure that they are fit for purpose.”
The NZ government continues investigating the best ways to ban illegal and offshore gambling operations which has historically defrauded players, another reason for the controversial reaction to the license granted to offshore-licensed SKYCITY.
Yet further controversy has arisen from the clamouring of local casino and gambling outfits to open online platforms in the country in kind.
In July the New Zealand DIA held a public consultation to gather feedback from citizens on how the government should proceed with the measures.
The First CC Shutdown
While the feedback was being acquired in September, major Australian bank Macquarie became the first bank in Australia to ban across the use of credit cards for gambling-related activities with the UKGC apparently considering to follow suit.
With problem gamblers clinically confirmed to rationalize that any debt incurred will be paid off again as soon as they “make the next big win,” the deterrent to going into debt has to be made stronger and more apparent to gamblers, and banning credit cards looks like only half the battle. Look for more measures to be generated from the way the new ban plays out in NZ.