Nasdaq-listed cloud-based software company Epazz Inc has filed a patent for a blockchain solution to manage compliance of online sports betting operators in the United States.
In a regulatory filing, Epazz announced on Wednesday that it has developed a blockchain fantasy sport gambling solution that will keep track of state laws to determine if an individual is in compliance.
Even before the U.S. Supreme Court lifted the federal sports betting ban, Epazz pointed out that operators have to ensure they’re in compliance with individual state law.
Epazz’s patent application targets compliance management and verification of available funds, according to the company. The company’s cryptocurrency wallet, Zenapay, will verify all the details before an individual is allowed to participate in a transaction, according to the Chicago-based firm.
The idea for compliance management came while the company was designing its fantasy sports gambling solution. Epazz CEO Shaun Passley said their design team developed a unique way to process transactions that will verify whether the bidders have the necessary funds and determine whether they are compliant with state laws.
Passley noted that traditional financial institutions prohibit high-risk industries, such as gambling, from accessing their payment systems. With the new solution, the Epazz executive said consumers will have more ways to purchase or pay for the items and services.
“We are able to reuse our technology in multiple different blockchain applications. We believe we need to create a primary mobile app which has robust functionality,” Passley said in a statement. “The user will be able to select which functions he or she wants. This business model allows us to decrease our customer acquisition cost and build a user community as we develop and acquire new apps.”
Passley expressed optimism that Zenapay and their other blockchain apps will begin to generate revenues in the future. Founded by Passley in 1999, Epazz specializes in enterprise cryptocurrency blockchain mobile apps and cloud business process software. The company report a flat 2018 first quarter, with revenues rising slightly to $474,145 from the $473,947 recorded in the same period last year, while its net income totaled $15,050.