Location-based services soon to include mobile gambling

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SAN DIEGO-- Some mobile location-based services platforms may be adding legalized gambling to their portfolio of services as soon as next year. The initiative, currently in the works in Nevada, uses IP location technology from Location-as-a-Service (LaaS) provider and Fierce 15 winner, Locaid, and identify verification technology from GambleID.

The company's SVP of sales, Jeff Allyn, in an interview with FierceMobileContent, here at MobileCon, said Locaid is the only location services provider that meets the requirements of the Nevada Gaming Control Board.

Essentially Locaid's location technology verifies if a user is actually in an area that permits gambling via mobile. This can get especially tricky in towns near state borders. Users located within a certain radius of a state border will be automatically logged out after 5 minutes, Allyn said, to prevent fraudulent gambling outside of authorized zones. Atlantic City, N.J., is also working on a similar initiative, as are select state lottery systems. 

Mobile gambling is already a growing business and source of revenue outside of the U.S. In May, Juniper Research issued a report finding that users placed over $13 billion in bets worldwide in 2011, with that figure expected to grow to $45 billion by 2017.

According to report author and Fierce contributor Windsor Holden, "Companies such as Ladbrokes, William Hill and Paddy Power are all seeing 40 percent or more of online sportsbook customers placing bets via a mobile or a tablet, with the result that those devices already account for around 20 percent of bets placed."

Locaid licenses its APIs to over 200 customers worldwide. In addition to location verification for mobile gambling, the company also helps to provide workforce management to verify remote workers as well as location-based ad-messaging services and works with financial institutions.

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