Locaid has reportedly developed technology that can verify the geographical location of the user of a smartphone.
Locaid announced that it plans on lending its services to the states of Nevada and New Jersey as they implement legislation which will legalize online gambling.
Locaid had officially applied to become a licensed service provider of “geolocation and compliance technology” in Delaware, Nevada, and New Jersey.
The ability to verify a player’s location is vital to the running of an online gambling site. A site needs to verify that a player is allowed to play in their area or not. Casino sites that do not verify their player’s locations run the risk of losing players in locations where online gambling is actually legal. What’s more, the online gambling site will lose credibility with regulators and their costs could increase as a result.
Locaid chief executive officer, Rip Gerber, said that their location technology cannot be manipulated. “The location data we provide is the only one that can’t be spoofed. In cities with concentrated towers, it can get to within 5-feet accuracy range.”
The service is “spoof-proofed” by relying on multiple methods for verifying a user’s location. One method is triangulation, where a cellphone’s position is identified in relation to the location of other cellphones in the area. Locaid checks the IP address of the user and also checks with a Wi-Fi service provider about the location of a user on its network. If the results of all of these methods correspond to the same geographical data, it can be verified that the user is within a state where online gambling is legal. A message is then sent to the online gambling service confirming that it is legal to offer gambling services to that player.