[dlk9s]

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You don't think people that live in the same town/university/go to the same school are more likely to collude with each other? Most friends (especially school or college age) live in the same town or suburb.

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Sure, but people on the internet can collude, too. I don't live in the same state as any of my poker playing friends, so if I wanted to collude, I'd do it over IM/phone.

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If what you say is true, why does Party go the trouble of having address verification? Why do all poker sites show a person's location (with no option to turn it off)?

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Party isn't just concerned about someone's city. They want to see the whole street address. They want evidence that you are who you say you are, living where you say you are living.

As for showing the location, it's probably because players find it interesting to see where others are from.