GeoComply Enters Unicorn Territory with Atairos, Blackstone Investments
Posted on: March 24, 2021, 09:57h.
Last updated on: March 24, 2021, 01:22h.
GeoComply Solutions, the provider of geolocation services to gaming operators, is in rarefied air among privately held emerging growth companies.
Following the first influx of institutional capital into the Canadian cybersecurity firm, the company is valued at north of $1 billion. That means “unicorn” status is applicable. “Unicorn” is industry-speak for closely held technology companies with valuations of at least $1 billion.
GeoComply’s ascent to that lofty status comes with the help of Atairos and private equity firm Blackstone (NYSE:BX). Those companies made undisclosed minority investments in the technology firm.
Previously based in Las Vegas, GeoComply moved to Vancouver in 2010. It’s just the third company in that region of Canada to become a unicorn, according to Business In Vancouver.
Good Timing for Atairos, Blackstone
With the US sports wagering market booming, demand is on the rise for GeoComply’s services, indicating Atairos and Blackstone may benefit from favorable timing with their investments.
Services and technology provided by GeoComply to gaming companies are straightforward. Sportsbook operators use GeoComply products to ensure internet clients are placing bets in states where the activity is legal.
That’s an important point in the US, because sports wagering is live and legal in just Washington, DC, and 21 of 50 states. Additionally, not all of those states currently permit true mobile and online betting. For example, Arkansas, Mississippi, and New York don’t allow mobile wagering.
For gaming companies, technology provided by GeoComply and its competitors is a necessity, because sports betting is highly regulated at the state level. Operators risk running afoul of regulators if they don’t actively ensure wagers placed on their platforms are occurring in a state where sports betting is legal.
GeoComply and competing vendors are also relevant to gamblers. Many online sportsbook operators require that a bettor is in the state where the wager was placed to cash winning tickets.
Other Offerings, Impressive Client Roster
Last year, GeoComply launched PlayPause, which is aimed at facilitating responsible gambling habits in online venues.
That product allows bettors that placed themselves on a self-exclusion list in one state to carry that status over to another state. The company provides that service to operators at no cost.
GeoComply gaming clients include FanDuel, DraftKings, and BetMGM. These are the three largest online sportsbook operators in the US.
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