Oct29
New Zealand’s Regulators Contemplating Banning Online Gambling With Credit Cards
July 30, 2019 Kristina Vujadinovic
The government agency responsible for regulating gambling in New Zealand is contemplating banning the use of credit cards for online gambling. News about the potential introduction of a ban arrives as local casino operator, SKYCITY Entertainment Group, is gearing up to make its first foray into the online gaming space.
Under the current country’s law, there are only two operators authorized to provide online gambling services from within the country. TAB and the state-run Lotto are exclusive operators that can offer their services to the online gaming community.
However…
… earlier this year, news that SKYCITY will be ing its ranks has emerged. This brand which operates four hotel and casino properties across the country has teamed up with a Malta-based online gambling company in order to expand its operation to the online market.
The online gaming operation who will stand next to TAB and Lotto will be run by SKYCITY’s Maltese subsidiary, SkyCity Malta, while…
… the platform will be powered by the reputable gaming and betting operator and technology provider Gaming Innovation Group (GiG).
Online Expansion in line with Ban?
The operator’s decision to venture into the online gambling segment caused mixed reactions. Concerns were voiced that this will result in increased gambling addiction cases since the “more people would turn to a brand they recognize and trust to fuel their gambling-related problems.”
While others were expressing their hope that this will lead to a more open market, it seems like the New Zealand Department of Internal Affairs is siding with the first tide.
It is a valid possibility that these concerns have prompted the regulator to review the nation’s gambling laws and possibly impose a ban on the use of credit cards for online gambling.
Possible Ban First Step Towards Stricter Market
So far, there aren’t many details about when and whether a ban on credit cards would be introduced in New Zealand.
However, there is a belief that any such measure will aim to protect online gamers. It might prevent players from spending excessive amounts of money on websites not regulated by the local competent authorities.
News about NZ potentially banning gambling-related transactions through credit cards arrives just days after the UKGC announced that it will be contemplating the same credit card ban in the twelve-week consultation.
Last month, the Australian bank Macquarie also decided to start blocking all transactions that are classified as gambling under the merchant codes from July 1, suggesting that more banks could follow in their footsteps.
To recall, under NZ law, only two online operators can conduct this type of gambling from within the country.
Additionally, SKYCITY is circumventing the existing regulations by basing its operation in Malta, therefore operating under the licenses of this regulator.
The operator emphasizes 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.”
On the other hand, many NZ lawmakers have an opinion that an operator going live with an online casino means there is a need for new, stricter gambling regulations in the country. Banning gaming activities with credit cards is likely to be the first step toward some form of the local market reorganization.
Source:
“Department of Internal Affairs considers credit card ban for online gambling”, nzherald.co.nz, July 29, 2019.
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Oh, give me a break! Once again the government will do anything to stop the competition, with the excuse that it is protecting its residents.