"The technology for verifying whether a person can legally gamble in a particular location is important. States have to verify whether a gambler is within state borders or not, given the variation in online gambling laws in the U.S. If a player cannot legally gamble where they are and the provider cannot verify that location, the result will be a higher cost for the online gambling site and lost credibility with regulators.
Gerber said the technology is spoof proof because it relies on multiple methods for verifying location. One technology is server-based, where the firm uses triangulation. It gets a fix on a cell phone by figuring out where it is relative to multiple cell phone towers in the area. Cell phones always seeks out the nearest tower. Locaid also checks with a Wi-Fi service provider about the location of a user on its network, and it checks the Internet protocol (IP) address of the user. If all of those methods show that the user is within the borders of a state that provides online gambling, then it tells the provider that it’s OK to offer gambling services to that player.
“The location data we provide is the only one that can’t be spoofed,” Gerber said. “In cities with concentrated towers, it can get to within 5-feet accuracy range.”
But to provide those services in the gambling industry, Locaid has to show it is a legitimate company, so it had to provide about six inches of paperwork vouching for the company and its executives, Gerber said. Three states have passed laws permitting some form of online gambling, and other states, such as California, are considering bills to approve online gambling. At some point, Gerber said, his company will have a real market for its “location-as-a-service” business."
Read more at http://venturebeat.com/2013/08/13/locaid-aims-to-provide-precise-locations-for-online-gambling-services/#h54V5caCcA50YBo1.99