Geolocation has become a key technology for regulated online gaming, going far beyond simple compliance with regulations. From social responsibility to fraud prevention to new tax requirements, its role is constantly evolving. Jamma spoke to Manu Gambhir, CEO of Xpoint, to understand how this market was born in the United States, why it is expanding globally and what opportunities it can offer online gaming operators in Italy today.
Founded in 2019, Xpoint is now one of the leading providers of geolocation solutions for the online gaming industry. The company is approved in 27 US states and Ontario, Canada, providing its services to digital sports and fantasy betting platforms such as bet365, PrizePicks, and Sporttrade.
In a market that is increasingly attentive to regulatory compliance, fraud prevention and social responsibility, geolocation is emerging as a strategic technology, capable of going far beyond simple compliance with regulatory obligations.
In this interview, Manu explains about the evolution of the geolocation market, the less visible “superpowers” of this technology, and the potential benefits for online gaming operators in Italy.
Q. How did the need for geolocation arise in the online gaming sector?
A. The origin is to be found in the United States and, in particular, in the Interstate Wire Act, a federal law that prohibited any bet made outside the borders of a state. When New Jersey was the first state to legalize online gambling, a fundamental need quickly emerged: to ensure that no bets were accepted even a few feet outside the state lines, because that would have been a federal offense. This is where the entire geolocation industry applied to gaming was born, which then extended to other American states.
Q. Is geolocation only used in the United States today?
A. Absolutely not. Eight years later, geolocation has become a central tool in other markets as well. Today, we have customers in Canada, the United States, Brazil, and the United Arab Emirates. In many of these countries there is no federal or state regulation rule like in the United States, but operators have understood that geolocation is useful not only to comply with the rules, but also to improve their business model.
Q. Can you give us a concrete example of use outside the USA?
A. There are other countries where religious and cultural sensitivities are such that geolocation providers, including Xpoint, have created geographical barriers around mosques and government buildings. If a person physically enters these areas, access to the game is automatically blocked. As soon as the person leaves, they can return to play. In this case, geolocation is expressly required by the regulator.
Q. Are there cases in which geolocation is adopted even without a regulatory obligation?
A. Yes, and it is a growing phenomenon. In the United States, for example, one of our customers decided to create geofences around all the high schools in the country, attended by minors. It is not a legal obligation, but a choice of social responsibility to prevent students from accessing the game, perhaps using their parents’ documents or credit cards. This shows how the sector is maturing and is going beyond simple formal compliance with the rules.
Q. Is geolocation also useful for combating fraud?
A. Absolutely. Where there is money, there are attempts at fraud. A widespread practice is to create thousands of accounts using stolen identities and credit cards, often to take advantage of the welcome bonuses offered by betting platforms. Without advanced geolocation, a person who is physically abroad can register on a national site without being detected.
Q. Why is IP address checking not enough?
A. The IP address method can be inaccurate in as many as 20–30% of cases, especially on mobile devices or in border areas. Plus, it’s easily bypassed through VPNs or more sophisticated tools. The most advanced fraudsters even go so far as to modify the firmware of devices to simulate a physical presence in another city or country.
Q. So how do the most advanced systems work?
A. The most advanced solutions combine several signals such as satellite GPS, cellular networks, known Wi-Fi, Bluetooth and other technical indicators to determine a confident and precise location. The real value is not just to establish where a user is, but also to understand if they are lying about their location. Detecting location fraud attempts requires very specialized technologies.
Q. Are there other areas in which geolocation is becoming strategic?
A. Yes, taxation is an emerging issue. In the United States, for the first time, the city of Chicago has introduced a 10.25% tax on bets made by users physically present in the municipal area. This forces operators to accurately track users’ locations and send periodic tax reports. Similar models are likely to be adopted elsewhere as local governments seek new sources of revenue.
Q. In this context, why should an operator invest in a geolocation that is more advanced than the minimum required by law?
A. Because the benefits go beyond compliance. More advanced technology makes it possible to reduce fraud, strengthen social responsibility and prepare for future tax or regulatory obligations. Many operators understand that a higher initial investment can translate into savings and greater security in the medium term. Operators can also use location data for customer segmentation, marketing, and other business purposes.
Q. What is Xpoint’s position in this market?
A. In the United States, there are three major suppliers that are leaders in geolocation for gaming. Xpoint is the only one that is completely focused on the gaming industry. We do not operate in other areas because gaming is extremely complex, with very specific regulations and licenses. Focusing on this area allows us to be truly specialists.
Q. Looking at Italy, what are the main needs?
A. In Italy, concessionaires must ensure that players are physically located within national borders. This is particularly delicate in border areas, where travel is frequent. Simply checking your IP isn’t enough. The integration of multiple technical signals, on the other hand, makes it possible to fully comply with regulatory requirements and protect operators from economic and reputational risks.
