New Zealand’s Online Casino Reform Includes Credit Card and BNPL Gambling Ban

New Zealand’s proposed Online Casino Gambling Bill regulates an online casino market that has previously operated without regulation. The Bill proposes banning credit cards and buy now pay later (BNPL) techniques. Here, cards and BNPL schemes are tools of gambling. In its harm-minimization framework, up to 15 operators could receive licenses from late 2026. 

After years of unregulated overseas competition, New Zealand is about to commence fully regulated online casino gambling. The Online Casino Gambling Bill is now in Parliament, and New Zealand expects a fully licensed environment from 2026/2027. Up to 15 operators have to obtain licenses to operate. 

Authorities have now proposed major changes to payments in gambling. They include banning credit card payments and buy now pay later (BNPL) options. The concern is gambling-induced financial harm. There are other considerations that impact available online gambling options and player practices.

Credit Card Gambling Ban

When the new regulations come into effect, online gambling companies will not accept credit card payments from New Zealand customers. Officials have made the potential risks of gambling-related debt a focal point. Problem gambling affects approximately 0.8 percent of the population, according to the New Zealand Ministry of Health. Moreover, experts have identified gambling with credit as a significant risk factor.

Although licensing and regulation are legal requirements, they remain conceptual in practice. That’s because many New Zealand players continue to access offshore platforms. These platforms often offer incentives such as free spins on registration or no deposit casino bonus promotions. That allows players to try games or receive small credits without making an initial deposit. While these offers are popular, they highlight the difficulty of regulating gambling activity that occurs outside domestic control.

The objective of the new regulations is to reduce gambling-related harm. It still maintains the availability of online gambling in a licensed and monitored environment. Evidence from Australian and UK markets suggests that restricting credit card deposits can reduce gambling activity among high-risk groups. Research also indicates that some players may substitute other payment methods. They would continue to engage in online gambling despite credit restrictions.

BNPL Gambling Ban Included

Policymakers in New Zealand have been concerned about the rapid adoption of Buy Now Pay Later products. That’s because the Commerce Commission shows more than 2 million adults in New Zealand in 2025. This is an indication that New Zealand residents have no concern about adopting short-term credit. That’s the same concern New Zealanders have regarding gambling.

The prohibition means online casino players cannot utilize buy-now pay-later (BNPL) services to fund their accounts. This aims to prevent consumers from circumventing the use of credit cards to defer payments to access credit for gambling. 

Authorities have not yet regulated BNPL in relation to gambling. However, regulators took a proactive approach, given the integration of technology with payments. Analysts have raised issues regarding debt accumulation and the lack of consumer understanding of the repayment cycle.

The rationale for supporting the reform is based on payment method restrictions. These restrictions align with the broader goals of the reform. In particular, they support harm minimization. Players could only gamble with the money they actually have.

Reasons Behind the Payment Restrictions

The justification is that banning credit cards and BNPL payments will lower gambling-related debt. The Department of Internal Affairs describes the Bill as an instrument of harm minimization and consumer protection, as these measures form part of a larger framework for safer online gambling.

Those opposed to this view argue that the removal of payment methods is likely to cause gambling to migrate to cash-based methods, to platforms that remain unregulated under New Zealand Law. International market evidence shows that to achieve a significant reduction in problem gambling, payment restrictions (especially on credit cards) have only a moderate effect and must be accompanied by education, support services, and monitoring.

The debate has also focused on access issues. While licensed operators will be required to comply with New Zealand law and regulation, likely, the removal of certain payment options will disproportionately affect recreational players who are more likely to use credit for its convenience.

Other Payment Methods and Safeguards

Despite the prohibition of credit cards and BNPL schemes, licensed casinos will still accept payments via debit cards, direct bank transfers, and direct payment methods. Regulators will be implementing verification and responsible gambling safeguards, including, but not limited to, deposit amount restrictions and behavioral monitoring for gambling addiction.

Regulators will also implement self-exclusion registers, gambling monitoring programs, and other harm minimization methods as part of the regulatory framework. Record-keeping, enforcement, and compliance monitoring will be part of the licensing system.

Future Implications

The bill is likely to be implemented by the middle of this year and will require unlicensed operators to cease activities by late 2026 or early 2027. This indicates the shift from an unregulated framework of online gambling to regulated oversight.

The emphasis on preventing financial harm stemming from online gambling is evident in the restrictions placed on credit and buy-now-pay-later payment methods. Although certain players may circumvent these restrictions by adopting alternative payment methods, the primary objective is to mitigate potential risks associated with incurred debt. 

Analysts will pay attention to how gambling operators will modify their advertising, their payment and compliance systems, and how far the revisions will go in decreasing gambling harms and increasing the promotion of safe gambling practices.

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