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- The Credit Card Ban – What you Need to Know
Why Did This Happen?
According to the experts, the decision to remove credit cards as a payment method for online casino came after a report that the SkyCity Entertainment Group planned to launch online gambling in New Zealand. The potential move would mean that a company based outside New Zealand would be offering online gambling services to residents; the previous options were restricted to TAB and the state-run Lotto, who were the only firms authorised to offer online gambling products. According to New Zealand law, no online gambling sites are permitted to operate from outside the country. SkyCity, on the other hand, is paired with a Malta-based gambling operator, and their intended gambling services would be provided by SkyCity malta, the Malta-based subsidiary of the company. Should the move go ahead, it would echo a decision made by Australian bank Macquarie, who made history as the first major Australian bank to ban gambling with credit cards. It is believed that the decision may have set a precedent across major financial institutions and organisations, with the UK Gambling Commission has also expressed an interest in banning credit cards for online gambling.The Next Steps
After the announcement of their plans by SkyCity, the DIA responded by opening up a public consultation. A public discussion document, Online Gambling in New Zealand, invited residents to air their views and opinions while acknowledging that the current Gambling Act 2003 is outdated, having been unable to foresee the modernisation of gambling, and the impact the internet would have on the casino industry. The public was given four options to update the gambling laws:- Lotto and TAB (the existing gambling product providers) continue to operate as the sole providers of lotteries, sports betting, racing, and other gambling products (this effectively votes for the law to stay the same).
- Lotto and TAB widen their product line to include products such as casino games.
- Domestic operators (any NZ based commercial or charitable organisations) would be granted a license to offer casino-style online gambling products.
- Any domestic or overseas operator could be granted a license to offer gambling products online (the best option for brands such as SkyCity).