Posted on: September 22, 2022, 02:32h.
Last updated on: September 22, 2022, 02:32h.
When Sporttrade debuted its sports betting exchange in New Jersey last week, it also marked the arrival of another new gaming technology product.
Xpoint debuted its Xpoint Verify, its geolocation product for real-money gaming operators. Xpoint also offers a similar product, called Xpoint Lite, for daily fantasy sports companies.
We were attracted to work with Xpoint because they bring real innovation, rich experience of our industry, and most of all a true sense of partnership by going deeper than just simply verifying customers’ location,” Sporttrade founder and CEO Alex Kane said in a statement. “Our companies share many attributes, and we are both focused on transforming our markets. We are delighted to have Xpoint as a core partner of ours.”
Sporttrade and Xpoint initially announced their partnership last December. Miami-based Xpoint will continue to provide its geolocation platform for Sporttrade as it launches exchanges in other states.
Why Geofencing Is Needed in US
The market for legal sports betting has grown exponentially in the US since the Supreme Court overturned PASPA more than four years ago. However, while the nation’s top court struck down the law that forbade most states from legalizing sports betting, that historic ruling did not address another federal law pertaining to sports betting – the Wire Act.
The Wire Act, passed in 1961, prohibits the use of communication devices for making wagers on sports across state lines. At the time Congress passed the law, it was designed to target organized crime syndicates that were involved in illegal bookmaking schemes across the country.
Because of that law, anyone who wants to use a sportsbook licensed in a particular state must be physically located in that state in order to complete the transaction. It also means that legal sports betting exchanges cannot allow trades to occur between bettors from two different states, even if the bettors are in states where sports betting is legal.
Geofencing providers like Xpoint use technology to detect out-of-state attempts and other instances of fraudulent activity and block those wagers from being processed.
Xpoint Celebrates ‘Milestone’ Achievement
What Xpoint believes it can do with its geolocation service is provide significant data to its clients, like Sporttrade, and help them hone their products.
“Sporttrade is a revolutionary brand, bringing real innovation and customer-focused sports betting technology to the U.S. market, and we are proud to be part of their team,” Xpoint CEO and Co-Founder Marvin Sanderson said in a statement. “This announcement marks another milestone for Xpoint, and will serve as a further accelerant for new customer acquisition, supporting our growth targets, and helping us continue to transform our marketplace.”
Xpoint was founded in 2019. Earlier this year, the company announced it secured investments from Courtside Ventures and Bettor Capital. Those funding agreements are expected to help Xpoint grow, both domestically and abroad, as an online gaming technology provider.