Lock in player protection: why geolocation is key for lotteries

Employing geolocation technology

Geolocation software is vital to conducting compliant operations with confidence. For lottery operators, it is key to integrate location analysis technology that is intuitive and built on industry-specific knowledge, with efficiency and effectiveness essential.

Anti-money laundering, anti-fraud and location-spoofing capabilities are major use cases for geolocation, while locating at-risk players is also a top priority for any responsible operator. For WLA members, lotteries are often only permitted in their specific countries, with strict geographic boundaries. By verifying a customer’s location, lotteries can be confident that the products they sell are being purchased legally, while blocking access from regions where online gambling is illegal and preventing money laundering. Consequences of non-compliance across the industry proves costly, with fines being dished out for breaches topping eight-figure sums in the last couple of years.

For anti-fraud purposes, precise and real-time technology enables operators to locate players frequently from their first deposit or log-in of each session, ensuring they are in the location they say they are, and remain there. A key red flag for fraud and money laundering is if a user is placing bets or making withdrawals from outside their usual location, or multiple locations within a set time period. It helps stamp out account sharing and put a stop to bonus abuse.

Location data can also help identify and prevent users flagged for problem behaviors from making purchases, as well as safely and effectively targeting marketing to tailor player journeys. It is important to distinguish between these player segments to fulfil pledges to promote social responsibility and secure business operations.

There are many geolocation software providers out there that offer technology applicable to a range of sectors, including finance, retail, and media, as well as lotteries, sports betting and online casinos. Technology developed with a gaming-focus business logic at its core helps to maximize the chances of your solution being the most reliable and up to date with regulatory updates, with a team behind it that has the knowledge to back it up. With this in mind, OpenBet developed OpenBet Locator™, built on the backbone of Amazon Web Services (AWS), to deliver an industry-specific offering, underpinned by more than 20 years’ expertise. For the global gaming industry and lotteries in particular, standards are high with little to no margin for error, and robust technology which is tried and tested is invaluable.

Benefits for lottery operators

WLA members and other global lottery operators must ensure they comply with specific restrictions, similar to other verticals across the iGaming spectrum. Enforcing age verification is a common requirement. In the UK, gambling, including the lottery, is only allowed for those over 18. In Greece, this age climbs to 21. Geolocation software can work in tandem with other products such as ID checks when checking addresses are within the correct jurisdiction.

Location spoofing detectors built into geolocation technology ensure VPNs are identified by IP address analysis and other methods. This helps to detect players who claim to be in one geographical location when they are logging on from a restricted area. Ultimately, this supports player protection efforts.

For promotional purposes, operators can use different geofences to promote to players within target geographies in a localized way. Prizes related to local events or offering geo-targeted bonuses can incentivize players to take part. This approach can also help to curate targeted player journeys that are relevant, creating a seamless user experience.

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