The New Zealand Department of Internal Affairs, the government agency responsible for regulating gambling on the territory of the country, is mulling a ban on the use of credit cards for online gambling.
News about the potential introduction of a ban on credit card gambling arrive as local casino operator SKYCITY Entertainment Group is gearing up preparations to make its first foray into the online gaming space.
Under New Zealand’s current law, TAB and the state-run Lotto are the only operators authorized to provide online gambling services from within New Zealand. However, it emerged earlier this year that SKYCITY, which operates four hotel and casino properties across New Zealand, has teamed up with a Malta-based online gambling company for the launch of its first online casino.
The online gaming operation will be run by SKYCITY’s Maltese subsidiary, SkyCity Malta, and will be powered by the online casino platform of gaming and betting operator and technology provider Gaming Innovation Group.
SKYCITY’s decision to venture into the online gambling segment was met with mixed reactions. Concerns were voiced that the launch of the skycitycasino operation would result in increased gambling addiction cases as more people would turn to a brand they recognize and trust to fuel their gambling-related problems.
It is probably these concerns that have prompted the Department of Internal Affairs to review the nation’s gambling laws and possibly impose a ban on the use of credit cards for online gambling.
The Possible Ban
While there are not many details about when and whether a ban on credit cards would be introduced in New Zealand, it is believed that any such measure would aim to protect local gambling customers from spending excessive amounts of money on gambling on websites that are not regulated by the local competent authorities.
News about New Zealand potentially banning gambling-related transactions through credit cards arrive just days after the UK Gambling Commission announced that it would hold a twelve-week consultation, starting mid-August, to determine whether it should ban gambling online with credit cards.
It also emerged last month that Australian bank Macquarie has decided to start blocking all transactions that are classified as gambling under the merchant codes from July 1. It was suggested that more banks could follow suit.
As mentioned earlier, under New Zealand law, only two operators are allowed to conduct online gambling from within the country. However, SKYCITY is circumventing the existing regulations by basing its operation in Malta.
The operator has said that its site would include the necessary tools and practices to ensure that customers are provided with the opportunity to “enjoy playing in a safe, secure environment.”
According to many New Zealand lawmakers, SKYCITY going live with an online casino demonstrates the need for new, stricter gambling regulations in the country. The discussed ban on gambling with credit cards seems to be the first step toward some form of reorganization of the local market.
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