In New Zealand, gaming operators are required to donate 7% of their profits to community initiatives across the country. The system is one of the most beneficial in the world, providing more money to community projects than most other gambling markets. The money gathered from gambling operators is used to fund a wide range of projects, including sports, arts, health and education initiatives. Many of the donations from gambling grants go back into the communities in which they were raised.
Gambling operators donate their money to a wide range of Gambling Trusts across the country, such as Pub Charity and The Lion Club. Community groups and organizations then apply to these foundations for funding. Operators do not directly handle donations in order to avoid conflicts of interest.
The proceeds donated by gaming clubs provide the most significant source of community funding for not-for-profit organizations across New Zealand. Gambling grants make a more significant impact on community efforts than any other financial resource in the country.
Over the course of the last year, The Lion Foundation donated more than $53 million to 4175 charities and community efforts across New Zealand. In its 26 years of operation, the foundation has awarded over $590 million in gambling grants. Last year, sports received the most amount of funding with $20.5 million, followed by community efforts which received $16.1 million. Health and education both received over $8 million. 918kiss
This year, Pub Charity donated $24 million. Sport and community, yet again, received the most funding with sports clubs receiving $7.6 million and community efforts receiving $6.9 million. Education and Health Services received $4 million and $3.3 million, respectively. Emergency services received $1.9 million.
Unfortunately, funds derived from New Zealand online casinos and other online gambling websites are not used to help community efforts in the country. This is because offshore gaming websites are not regulated by the New Zealand government. Politicians are currently reviewing the Interactive Gambling Act, however, and the regulation of international gambling websites is not entirely out of the realm of possibility.
A common worry among organizations requiring funding is the possibility of receiving funds from problem gamblers. However, The Lion Foundation assures that gambling is not a detrimental activity for New Zealand residents. The foundation quotes the Department of International Affairs, which states that “gambling can be a harmless entertainment activity from which people can derive personal enjoyment and which provides other positive social benefits”.
The credit card companies lobbied for laws governing online gambling with credit cards, although one would think that people would be the ones hesitant to their credit or debit cards online.
The main reason behind the shift in laws is that too many people have made it a habit to create debt that they cannot repay. Lawsuits have pardoned the debt, paid lawyer fees in full and left credit histories untouched. This is good for the people in debt, but bad for the credit card companies who end up losing a lot of money.
Response from Credit Card Companies
Charge card companies have decided to exact stricter regulations regarding credit balances by amending the terms and conditions surrounding receiving a card. Now you find higher interest rates incurred for particular transactions, so hopefully the user thinks twice before creating debt in certain ways.
Avoiding Financial Difficulty
Many people struggle with gambling addiction and online gambling with charge cards make it easier to spend large amounts of money than when gambling at a land-based casino. Many land-based casinos even advise players to leave their cards at home, so that they are not tempted to spend more than they can afford. Visiting online casinos makes this discipline even harder because generally you access these games from home. It is best that you then have someone you trust take responsibility of your credit and debit card while you play so that you do not end up making rash decisions regarding your money.
What Does the Law Say?
Some countries and states have designated areas where gambling is legal and those where it is not. This means that you could easily be breaking the law when pursuing online gambling with credit and debit cards. Online gambling is already illegal in the United States of America and this has led to interesting convictions in courts whereby credit card companies are being persecuted for allowing the activity to take place instead of the player for gambling online.
No More PayPal
You can no longer use PayPal as a direct payment option for online gambling and the majority of accredited online gambling sites have removed any mention of PayPal. This means that players do not have the option of transferring money from their MasterCard or Visa to PayPal accounts in order to gamble online.
Credit institutions each have their own policies regarding online gambling with credit cards and it is best that you familiarize yourself with those that apply to you and your credit card company. American Express, for instance, offers credit services managed independently from other banking institutions, while MasterCard and Visa is affiliated with many different banks around the world.
If you still want to use your credit card for online gambling, some casinos have developed a method that bypasses PayPal and the credit card bans against online casinos. Simply put, you use your credit or debit card to buy a “gift card”. You then use the gift card in the online casino, and MasterCard, Visa or other card company sees a purchase for a gift card