In the past few years, the U.S. has relaxed its view on iGaming with a number of states including New Jersey, Delaware and Nevada embracing new legislation permitting online gaming or iGaming. This new outlook coupled with the surge in mobile device usage allowed online gaming to quickly become one of the most profitable industries on the internet. Last year was the third full year of operations in the U.S. and the iGaming industry generated $212.2 million in revenue while boasting a 32.1 percent growth rate according to RubinBrown LLP’s 2017 Gaming Statistics.
This is a healthy ROI, but another budding industry is poised to potentially catapult iGaming revenues if it can weather the storm of legal concerns and regulatory issues. Daily fantasy sports (DFS) is a multi-billion dollar industry that is expected to bring in $5.3 billion worldwide from user entry fees by 2020 according to Juniper Research. It currently exists in a legal gray area so DFS is being examined in courtrooms across the country to determine next steps in regulation and taxation.
While the jury is still out on DFS, approved iGaming and mobile gaming are still tightly regulated and it is growing exponentially. iGaming operators must satisfy the needs of their customers while also complying with local and state laws. Luckily, geolocation services are available to help provide peace of mind to all parties.
How are geolocation services used in iGaming?
Compliance and verification. iGaming operators must meet a strict set of regulations established at state and local levels. These oversight entities mandate that iGaming companies verify a player’s location is within an approved boundary before bets are accepted, lottery tickets are sold and transactions are executed.
Geolocation is used in this location verification process. For example, a player downloads an iGaming app and to activate their profile they must agree to be located at the time of the transaction. Once the player agrees, their location is determined based on data gathered from the laptop, computer or mobile device used to complete the transaction. That location data is then compared to the legal boundary in order to verify and approve the transaction. If the player is within the boundary, then they are approved. The player’s transaction is denied if the location data reveals that it was placed outside of the boundary.
What geolocation services are available?
Geofencing is a popular service for iGaming for boundary compliance checks, but there are many different options that serve a variety of industries. You can learn more about them by visiting our Location page.
Why use geolocation services?
Location intelligence has become a necessity rather than an add-on for iGaming operators to thrive in today’s mobile-dependent world. Forward-thinking operators are investing in secure, non-spoofable geolocation services for compliance and to provide richer player experiences.