The New Zealand lender Kiwibank has decided to provide its customers with the chance to voluntarily block gambling transactions as part of its efforts to help the Government tackle increasing online gambling rates.
For the time being, it is the first bank in the country to offer such a block that is known to have helped some people take control of their compulsive gambling habits.
Before making an announcement of the decision to offer the voluntary gambling transaction block, Kiwibank said it saw an increase in customers’ spending was registered during the coronavirus lockdown in 2020. The head of sustainability of the bank, Julia Jackson, revealed that Kiwibank had provided its customers with the chance to suspend themselves from making gambling transactions at their own request. The ban that could apply to customers’ debit or credit cards is a voluntary one and would essentially prevent people from spending their money on online gambling.
Ms Jackson has further noted that the decision is an optional one but the bank will offer the voluntary block to more customers because it wants to provide people with the chance to take control of their spending.
So far, the voluntary ban on online gambling transactions is being used by only 12 individuals, but reportedly, that has saved them an average of NZ$10,000 each since the end of 2020.
No Other New Zealand Banks Offer Such Gambling Transaction Ban
For the time being, none of the other major banks in New Zealand has offered a similar gambling transaction block service. Reportedly, Westpac has blocked the customers’ ability to earn loyalty points by the completion of gambling transactions, while the Bank of New Zealand is still considering the possible measures it can introduce.
The Problem Gambling Foundation (PGF) has called for more banks to suspend gambling transactions but still agreed that the effort to protect local people from gambling-related harm does not stop with them. The marketing director of the PGF – Andree Froude – said that the fact that online gambling is available to consumers 24 hours a day is a problem, especially considering the fact that people are now able to place their bets wherever they are, literally from their pocket, and such gambling activities are quite difficult to be spotted.
Froude further shares that the authorities must ensure effective regulation of the sector, with strong consumer protection provided to New Zealanders. She explained that the competent regulatory bodies and the Government have to impose a legal requirement for online gambling companies to provide good host responsibility to their customers.
The online gambling regulation of the country has been reviewed for almost two years by New Zealand’s Department of Internal Affairs. Currently, the review is still ongoing, so no update on the regulatory regime has been provided by the authorities yet.
- Author
Daniel Williams
