Investigating the application of blockchain in iGaming accounting procedures : a study

Abstract

Purpose: The purpose of this study is to investigate the operational challenges encountered by iGaming companies to determine potential areas where blockchain can provide a solution. Furthermore, the study seeks to identify procedures conducted by the iGaming finance function which can be facilitated through blockchain technology. The expected impact of blockchain on the accountant’s role as well as barriers to the implementation of blockchain solutions within iGaming companies are also explored. Finally, the study aims to determine current regulatory developments and the regulatory stance surrounding blockchain implementation in the iGaming industry. Design: A qualitative data collection technique was adopted in this study. The necessary data was collected during ten semi-structured interviews, which included eight iGaming companies and two regulatory authorities. Findings: The study established that, the most pressing challenges facing iGaming operators are the lack of service from the banking industry and rapidly changing regulations, whereby blockchain is envisaged to enable automation in compliance. It also resulted that, blockchain is deemed to facilitate the recognition of accounting data as well as the provision of audit trails. The accountant’s role is expected to become increasingly concerned with analysing data to propose suggestions that would drive the company forward. One of the main barriers to blockchain implementation within the iGaming industry is the lack of knowledge, understanding and information about blockchain. Finally, the study revealed that, the regulatory stance surrounding blockchain implementation is quite positive. Notwithstanding, at the time of writing, the gaming authority had not yet issued any licences. Conclusions: The researcher concluded that, professionals in the iGaming field possess insufficient knowledge about the blockchain sphere, while rapidly changing regulation is making it difficult for operators to comply with the law. Due to its intrinsic characteristics, blockchain is a viable option to facilitate accounting procedures. The researcher discerned that, the accountant’s role is expected to take on a more supervisory and advisory facet. Unless the lead regulator takes concrete action and begins issuing licences, operators may not be willing to explore its application, therefore, more communication about blockchain’s operation would help overcome the knowledge barrier to its implementation. Value: This study seeks to present blockchain as a potential solution to the operational complexities encountered by the finance function of iGaming companies, while hoping to raise increased awareness of its operation.