The big four banks of New Zealand lag woefully behind Australia in Responsible Gambling measures. Kiwibank offers some hope, but the other banks are a no-show. Two years ago, Kiwibank began to offer a “gambling blocker” service that customers could opt into. Though expected to follow suit, the others of the big four did not.
The Kiwibank Solution
Kiwibank, one of the big four banks, offers an opt-in service to help customers gamble responsibly. Kiwibank collaborated with PGF Services (Problem Gambling Foundation) on how to approach the topic of gambling addiction. They developed a practical solution. The bank can block online transactions on Visa debit or credit cards, to merchants registered as gambling institutions.
In 2020, transaction analysis by Kiwibank found COVID lockdowns correlating with huge spikes in online gambling spending. Frontline staff noted that some customers that were coming to them for help, had Problem Gambling issues. Though this scenario would have been the same with all New Zealand banks, only Kiwibank took action.
The bank’s gambling block option isn’t comprehensive though. Customers of Kiwibank can still pay in person anywhere they choose. Even if they have opted into the “gambling block” service, customers can still use their card in person at any business that offers non-online gambling. While merchant codes for known gambling websites will be blocked, using a physical card at casinos or gambling venues will not be affected. You can still buy a lottery ticket with your credit card at a brick-and-mortar store.
How Does This Compare to Australia?
New Zealand’s neighbour has prevented in-person credit card use at gambling venues, by law, since the early 2000s. Created at a time when online gambling didn’t exist, the laws are absent in this regard. In 2021, the Australian Banking Association (ABA) stepped up and introduced a swathe of measures for its banks to introduce.
In 2019 the ABA commissioned research regarding the use of credit in online gambling. This was luckily the year before such a study would be most urgently needed. Former state premier Anna Bligh was now at its helm as ABA’s CEO, and familiar with gambling laws decided at the state level. The study’s recommendations were comprehensive and easy for banks to implement. Online gambling surges, coinciding with COVID lockdowns the year after the study, were contained more easily than would otherwise have been possible.
Can the Countries Really Be Compared?
With different histories, demographics and laws, Australia and New Zealand are different kettles of fish. Problem Gambling though is a universal mental health disorder. And online gambling surged everywhere throughout the world during COVID lockdowns. So why have New Zealand banks failed the test where other countries haven’t?
Compared to other countries, the banking sector in New Zealand is small. Currently, all regulation and management of gambling and its related health issues at the government level is with the Department of Internal Affairs or with the Ministry of Health. There are few laws marrying bank account behaviour directly with the gambling sector. Still, it may come down to a simple attitude of “not my job” from the banking sector. Repeated statements from the New Zealand Banking Association simply do not support any measures to ban credit card use in gambling.
Will New Zealand banks “catch up” with Australia? No. The explanation is quite straightforward; the NZ banking sector’s association does not believe it can help manage gambling issues, and so… it just won’t.
