Xpoint launches pattern-analysis engine to detect coordinated bonus fraud
The engine targets organised fraud rings that cycle devices, accounts and locations to exploit sign-up bonuses, closing a gap that single-check geolocation tools cannot address.
Organised bonus abuse has overtaken every other fraud type as the top threat facing North American gaming operators, according to a March 2026 industry survey. Xpoint launched a proprietary pattern-analysis engine on 6 July 2026, rolling out first with its existing North American operator partners to catch coordinated fraud rings that single-check geolocation tools cannot see.
Engine targets coordinated fraud rings
The engine analyses historical location data to identify groups of players who repeatedly cycle the same devices, accounts and locations to claim sign-up bonuses and exploit promotions. It sits within Xpoint’s existing geolocation compliance stack and is designed to close the gap that real-time, per-login checks leave open.
The launch follows a growth funding round Xpoint closed in December 2025, led by existing investor Bettor Capital, which the company said would accelerate its research and development (R&D) roadmap and expand its product and engineering teams. The amount raised was not disclosed.
How the engine works
Unlike conventional geolocation checks, which evaluate each player login in isolation, the engine processes historical activity to surface patterns that emerge over time.
It can identify groups of users who repeatedly appear together across locations, particularly where some individuals have previously been linked to location spoofing, and flags that combination as a probable organised ring.
The analyses are computationally intensive and run in the background against historical data rather than in real time. Xpoint says this approach allows the engine to catch organised abuse without introducing additional checks or false positives that would block legitimate players.
Why the timing matters
A March 2026 study by LexisNexis Risk Solutions, based on a survey of 993 online gaming industry decision-makers, found that bonus abuse now ranks as the single most prevalent form of fraud in North America, cited by 78% of respondents as a top threat. The same research identified a single fraud network responsible for more than 95,000 fraudulent events and up to $3.2 million in exposure.
Separately, Sumsub’s 2025 iGaming Fraud Report put bonus abuse at 63.8% of all fraud in the sector, more than card fraud and identity theft combined.
EveryMatrix’s 2026 analysis described modern bonus-abuse operations as increasingly resembling ‘tech companies’, with dedicated roles for identity acquisition, account registration and withdrawal coordination.
Xpoint’s market position
Xpoint provides geolocation compliance technology to sportsbook, iGaming, lottery, daily fantasy sports (DFS) and sweepstakes operators, with confirmed partners including bet365 and PrizePicks.
As of mid-2025 the company held regulatory approval in 19 US states plus Ontario; in March 2026 it secured a Massachusetts vendor licence, taking its footprint to 28 states and territories plus Ontario.
Manu Gambhir, chief executive officer (CEO) of Xpoint, said:
‘Attempts to defraud operators are becoming ever more coordinated and advanced, so operators need the best possible tools to spot areas of concern early. Our pattern-analysis engine examines historical data to uncover unusual patterns an operator needs to be aware of, without in any way adding friction to the player journey.’
About Xpoint
Xpoint is a geolocation and compliance technology provider founded in 2019 and headquartered in Miami, Florida. It supplies geofencing and fraud-detection tools to sportsbook, iGaming, lottery, DFS and sweepstakes operators across North America, with further deployments in Brazil and the United Arab Emirates. Existing investor Bettor Capital led the company’s most recent funding round in December 2025.
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