DraftKings on Friday announced it was partnering with a third-party software vendor to prevent players in banned states from participating on its platform.
The fantasy sports company is employing GeoComply’s new “Solus” geolocation service to catch cheaters.
The software was designed specifically for the Daily Fantasy Sports industry and is already used by DraftDay, another DFS site.
DraftKings partnered with the company after a report in The New York Times, found that users were betting on daily games with the help of proxy servers. Those servers make it look as if the players are located in another geographical location.
In a press release, DraftKings said Solus provides the “best available defense against proxies.”
DraftKings currently blocks players in Arizona, Iowa, Louisiana, Montana, and Washington, where daily-fantasy-sports betting is illegal or borderline illegal.
DraftKings would have to acquire a license in Nevada, where the games are considered gambling.
DraftKings has not said exactly where the geo-location software would target.
The company could soon find itself deploying the technology in New York after Attorney General Eric T. Schneiderman issued a cease-and-desist order to DraftKings and competitor site FanDuel. He claims the play from these type of companies constitutes gambling in New York.
FanDuel has temporarily suspended play in New York, but DraftKings continues to operate in the state, citing the attorney general’s claim that he would not take action against the company before an upcoming formal hearing.
In Massachusetts, the state’s attorney general has taken a less severe approach, drafting regulations limiting monthly deposits, restricting marketing, and requiring disclaimers. The state would also move to make the playing age 21 and over.
DraftKings has said there are definitely concerns over draft play regulations, but that they are working with state officials in various locations to find an amicable solution.