Why operators are quietly switching geolocation providers, according to GeoLocs

(AsiaGameHub) –   As operators enter new regulated markets, geolocation is increasingly seen as essential for performance, compliance, and player experience. Once considered a static component of the tech stack, geolocation providers are now being reviewed more regularly due to evolving expectations around accuracy, scalability, and cost.

GeoLocs, developed by mkodo, has emerged as a leading solution to address these challenges. Ben Scobie-Trumper, Head of Sales at mkodo, discusses why attitudes are changing, what factors are prompting providers to switch, and how geolocation is becoming a more strategic priority for operators.

SBC News: Are you noticing operators becoming more open to switching geolocation providers?

Ben Scobie-Trumper: Traditionally, operators have been reluctant to change their geolocation providers once a system is established, often assuming that switching would be complex, disruptive, or risky.

However, this mindset is beginning to shift. As operators expand into additional markets and evaluate the effectiveness of their technology stacks, many are reassessing their geolocation arrangements.

Based on our experience with operators through GeoLocs, provider changes are actually occurring more frequently than commonly believed.

SBCN: What are the primary (publicly cited) reasons operators decide to change their geolocation provider?

BST: The main drivers typically center on performance, scalability, and cost, particularly as the market continues to grow.

Accuracy and reliability are crucial since they directly affect both revenue generation and regulatory compliance. False positives can prevent legitimate players from accessing services, while false negatives pose significant regulatory risks. Even minor improvements in accuracy can enhance player retention and increase betting activity.

In parallel, scalability and robustness are becoming central topics in our discussions. Major events like the FIFA World Cup create massive spikes in traffic, requiring operators to ensure their geolocation systems maintain accuracy during millions—or even billions—of checks without latency or failure.

Market expansion is another significant trend we’ve observed recently. As the industry develops and operators enter new regulated jurisdictions, they require solutions capable of adapting to different regulatory environments and network conditions without adding complexity. A notable example is Alberta; although the market isn’t fully open yet, operators are preparing ahead of time. At GeoLocs, we’re already operational in the region with a major lottery operator and have established a five-year relationship with the Alberta Gaming, Liquor and Cannabis Commission. This partnership gives operators confidence that they’re working with a provider who understands the local requirements from the outset.

Cost also plays a major role in decision-making. Some geolocation solutions rely on continuous location checks, which can become prohibitively expensive at scale. GeoLocs employs a more sophisticated approach by dynamically adjusting check frequency based on a player’s proximity to jurisdictional boundaries. This method enables operators to uphold compliance while significantly improving efficiency and reducing expenses.

SBCN: Are there reasons operators switch providers that they don’t discuss publicly?

BST: Indeed, and these reasons are not always shared openly.

While compliance, accuracy, and cost are most often cited, sometimes the real issue is simply that the relationship with the current provider is no longer effective.

Geolocation sits at the heart of regulatory compliance, so operators depend heavily on their provider for transparency, responsiveness, and technical support.

When operators begin exploring alternatives, it’s frequently due to frustrations such as delayed support responses, limited access to performance data, or the perception that the underlying technology hasn’t kept pace with industry advancements.

In such cases, while the technology may still function adequately, the partnership fails to deliver the value the operator requires.

SBCN: Why do you think switching providers is becoming more common now?

BST: Historically, many operators remained with their initial geolocation provider simply because they believed switching would be too difficult or costly.

There was a widespread assumption that migrating to an alternative solution would involve extensive development efforts, disrupt player verification processes, raise compliance concerns, or incur significant expense.

However, the technological landscape has advanced considerably. Modern geolocation platforms are designed to integrate seamlessly with existing operator infrastructure, meaning that switching is often far less disruptive than anticipated. At GeoLocs, we’ve seen customers successfully integrate with our platform within just five days.

Simultaneously, operators are growing more comfortable reviewing every aspect of their technology stack—including payments and KYC tools—which are routinely evaluated. Geolocation is now beginning to receive similar scrutiny.

To this end, operators no longer need to work exclusively with a single provider. We are observing an increasing number of operators choosing to partner with multiple geolocation providers. However, that topic deserves its own separate discussion.

SBCN: What questions should operators be asking about their current geolocation setup?

BST: The most important questions tend to be practical in nature.

Operators should consider asking themselves:

• Are we unintentionally introducing friction into the player journey?
• Are legitimate players being blocked near jurisdictional borders?
• Have our location checks been optimized from a cost perspective?
• And most importantly, does our current solution have the capacity to scale alongside our growth into new markets?

As operators expand internationally, these operational considerations take on much greater significance.

SBCN: Finally, what should operators take away from this trend?

BST: The key insight is that although geolocation operates quietly behind the scenes, its impact on the business is substantial.

It influences compliance adherence, player experience, operational efficiency, and ultimately, revenue generation. As markets expand and competition intensifies, operators are increasingly scrutinizing every piece of technology that supports their platform.

What we’re witnessing now is geolocation being included in broader strategic evaluations.

Rather than treating it as a one-time integration that can be ignored thereafter, operators are recognizing that selecting the right technology—and ultimately, the right partner—can make a meaningful difference as they continue to grow.