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Almost every sports bet goes through GeoComply
In 2018, the Supreme Court struck down a 1992 federal law the effectively banned most states from authorizing sports betting. However, Federal laws makes sports betting illegal across state lines. 27 states have legalized mobile sports betting with each state having different. These laws date to the 1960s when the federal government was trying to stop mobsters from controlling sports and horse race betting over the phone. It is big business to create virtual walls and corral online gambling state by state.
The clients of Geocomply control more than 90% of the US sports betting market. Almost every online sports bet is scrutinized by GeoComply to determine if it comes from a state where it is legal to place sports bets. GeoComply customers include DraftKings, FanDuel, BetMGM, Caesars, and various other betting operators. If the gambler is from a state where sports betting is illegal, they will be blocked from placing their bet. Gamblers will attempt to spoof their location. Fraudsters will use the dark web to try and game big promotional sign on bonuses offered by betting companies.
GeoComply uses geolocation which uses Wifi signals, GPS signals, cell tower signals and other data to make sure that a wager can be accepted. The company has a massive database of Wi-Fi locations. When someone wants to bet, it compares the database of Wi-Fi signals to predicted where the bettor is located. This is better than competitor’s technology which primarily uses cell tower triangulation which has proven to be less accurate.
GeoComply analyzes over 10 billion transactions annually. Over Super Bowl weekend, they did 100 million geolocation checks for the sports-betting apps which is a 25% increase versus last year. The company has 650 employees and a valuation of over $1 billion.
Works Cited:
https://www.wsj.com/articles/sports-betting-geolocation-geocomply-2b6bf288?mod=hp_lead_pos13
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