Investment Giant Clears State Regs, Gains Major iGaming Equity Stake

By: Jeff Ifrah

The world’s largest alternative asset manager was poised to make a major move in the iGaming space by investing in a leading geolocation company. The financial pathway for the envisioned investment was clear, but a transaction would require multiple state-level approvals. Ifrah Law drew on its deep experience in gaming law and working with regulators nationwide to lower the client’s approval burden and keep the time-sensitive deal on track.

With more than $1 trillion in assets under management, Blackstone is the world’s largest alternative asset manager. The firm focuses on identifying companies with untapped potential and enhancing their performance. As Blackstone assessed iGaming sector investment opportunities at the dawn of the decade, it set its sights on a highly promising prospect: GeoComply. The Vancouver-based technology company had already become a leader in helping online gaming operators discern whether bettors were masking their locations to wager illegally or were digitally cleared to legally place bets. Major brands such as DraftKings, FanDuel, MGM and Akamai relied on GeoComply to ensure regulatory compliance.

Blackstone sought to acquire an ownership stake in GeoComply, which would make it the very first equity investor in the fast-growing, private company. GeoComply at the time already held required licenses in several states, which was a major plus. But many states require that their regulators review these types of deals and provide or deny their consent. The cross-border– U.S. and Canada – dynamics of the transaction created an additional layer of complexity.

Blackstone called on Ifrah Law to assist with the deal. Blackstone is a complex organization with a multi-tiered ownership structure, which required our firm to collaborate closely with top leaders to formulate an action plan for gaining the required state clearances. Ifrah Law also worked directly with regulators in certain key states to minimize reporting and consent requirements so Blackstone’s acquisition could stay on track toward its targeted closing.

In March 2021, Blackstone successfully invested in an ownership stake in GeoComply. With the investment giant’s financial and strategic backing, GeoComply has continued to grow and expand its presence in the online gaming geolocation and compliance marketplace. In 2022, Fast Company listed the Vancouver-based powerhouse at number one on its list of The 10 Most Innovative Enterprise Companies.

To find out more about how Ifrah Law helps clients succeed and grow across the online gaming ecosystem, download our iGaming Services brochure.

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