Interview with Erik King: How New Zealand’s Online Casino Licenses Could Shape the Future of NFT and Crypto iGaming

New Zealand is set to join the growing list of countries embracing regulated online gambling, marking a transformative shift in its gaming industry. With the announcement of 15 online casino licenses available for auction, the stage is set for a competitive bidding process among global and local operators. This move follows the government’s decision earlier this year to regulate the online casino sector, prioritizing consumer protection, harm minimization, and revenue collection. As one of the last major markets to regulate online casinos, New Zealand’s approach could serve as a model for balancing player safety with economic opportunities. According to Erik King from Kiwislots, this can possibly affect the NFT and crypto gambling markets, not only in New Zealand but the whole world. Here’s that interview now.

Q: Erik, New Zealand’s announcement of 15 online casino licenses has generated significant buzz in the industry. Do you think this move could have an impact on the growing NFT and crypto iGaming sectors?

Erik King: Absolutely. The introduction of regulated online casinos in New Zealand comes at a time when NFTs and cryptocurrencies are already reshaping the iGaming landscape. While New Zealand hasn’t explicitly mentioned crypto or blockchain integration in its regulations, the global nature of many interested operators—like Bet365, 888, and Betway—means that cryptocurrency and NFT gaming could become an integral part of their offerings. These technologies are particularly attractive for operators as they enhance transparency, security, and innovation, which align well with New Zealand’s goals of harm minimization and consumer protection.

Q: How could the licensing structure influence operators’ adoption of blockchain technologies?

Erik King: Limiting the market to 15 licenses creates a highly competitive environment, which could incentivize operators to differentiate themselves. Incorporating blockchain technology and NFTs might be one way to stand out. For example, operators could use blockchain for provably fair gaming or offer NFT-based loyalty programs that give players ownership of unique in-game assets. These features align with the growing demand for innovation and personalization in online gaming. Moreover, the transparency of blockchain could help operators meet New Zealand’s strict player protection requirements, such as secure age verification and responsible gambling tools.

Q: Do you foresee any challenges for crypto iGaming in New Zealand under this new regulatory regime?

Erik King: Yes, there are potential hurdles. For one, cryptocurrencies are not yet widely regulated in New Zealand, and their use in iGaming might raise compliance concerns. Operators will need to ensure that crypto transactions comply with anti-money laundering (AML) and know-your-customer (KYC) standards, which will likely be a cornerstone of New Zealand’s licensing requirements. Additionally, there might be skepticism among regulators about the volatility of crypto assets and their potential impact on gambling harm. These challenges mean operators must strike a balance between innovation and compliance to gain regulatory approval.

Q: How might NFTs specifically play a role in the regulated market?

Erik King: NFTs could be game-changers, especially in creating unique player experiences. For example, licensed operators in New Zealand could offer NFT-based rewards for achievements, tournament participation, or loyalty milestones. These digital assets could be tradable or redeemable for in-game benefits, adding a new layer of engagement for players. Moreover, NFTs can foster a sense of ownership and community, which is increasingly important in the modern iGaming landscape. However, operators will need to ensure that these offerings comply with New Zealand’s advertising restrictions, particularly those designed to protect minors.

Q: Many of the interested operators are global brands like Betway and Bet365. How do you see them incorporating crypto and NFTs into their offerings in New Zealand?

Erik King: Brands like Betway and Bet365 are already exploring blockchain and NFT integrations in other markets. In New Zealand, they could use this expertise to gain a competitive edge. For instance, they might introduce hybrid payment systems allowing players to use both fiat and cryptocurrencies or launch blockchain-based gaming platforms that offer provably fair games. Additionally, these operators might integrate NFTs as part of their loyalty programs, leveraging their global infrastructure to introduce cutting-edge features while staying compliant with local regulations.

Q: With the government emphasizing harm minimization, do you think crypto and NFT gaming can align with these goals?

Erik King: Absolutely, if implemented responsibly. Blockchain’s transparency allows for real-time monitoring of player behavior, making it easier to enforce responsible gambling measures. For instance, smart contracts could automatically limit spending or issue warnings when players exhibit risky behaviors. NFTs, on the other hand, could be designed to encourage healthy gaming habits, such as rewarding time-outs or participation in educational initiatives about responsible gambling. The key will be for operators to prioritize player safety and use these technologies as tools to enhance—not exploit—player experiences.

Q: Any final thoughts on how New Zealand’s move could influence the future of crypto iGaming globally?

Erik King: New Zealand’s entry into the regulated online casino market could set a precedent for incorporating blockchain and NFTs into regulated frameworks. If the 15 licensed operators adopt these technologies effectively, it could inspire other jurisdictions to follow suit. For players, both new and existing crypto whales alike, it represents an exciting opportunity to experience cutting-edge features in a safe and regulated environment. For the industry, it’s a call to innovate responsibly and demonstrate how these technologies can coexist with strong consumer protection measures.

Q: Thank you, Erik, for sharing your insights. Any advice for operators eyeing New Zealand’s market?

Erik King: It’s my pleasure. My advice would be to view this as an opportunity to innovate while aligning with New Zealand’s focus on safety and harm minimization. Operators that can seamlessly integrate blockchain and NFT gaming into their offerings without compromising compliance will not only thrive in New Zealand but also set themselves up as leaders in the global iGaming market.