New Bipartisan Bill Aims to Enhance Age Verification in Betting

A new bipartisan initiative, supported by prediction market operator Kalshi, is emerging as prediction markets encounter increasing scrutiny regarding underage trading and calls for federal gambling regulations.

On Wednesday, Representative Josh Gottheimer from New Jersey introduced legislation that mandates online sportsbooks and prediction markets to implement facial recognition technology to verify the ages of users before they can place bets or trades.

The proposed legislation, known as the Facial Recognition to Protect Children Act, stipulates that betting platforms must utilize technology capable of analyzing facial features to estimate a user’s age during login or prior to placing a wager. According to Gottheimer’s office, this technology will not retain users’ identities or any personal biometric data.

This bill has garnered support from various quarters, including Kalshi and the advocacy group ParentsRISE. It has received backing from several co-sponsors, including Representatives Jeff Van Drew, Nick LaLota, Kristen McDonald Rivet, Jimmy Panetta, Darren Soto, Tom Suozzi, Ritchie Torres, and Bruce Westerman.

Gottheimer emphasized the need for this legislation, stating, “We’re asking our kids to self-police their way past a system built entirely on the honor code. A child can easily log into a parent’s, sibling’s, or friend’s account and place a bet without any verification.”

Kalshi’s CEO, Tarek Mansour, affirmed that safeguarding minors is a primary concern for the company, advocating for age verification to become a standard across the industry.

Gottheimer’s office noted that the rapid growth of sports betting has raised alarms regarding underage gambling, citing research from Common Sense Media indicating that 36% of boys aged 11 to 17 engaged in gambling activities in the past year.

Additionally, there has been an uptick in reports of underage betting in states like Iowa and Tennessee, with the latter reporting over 400 flagged underage accounts in 2024, a significant increase from around 100 in 2023.

In response to the scrutiny surrounding youth participation and consumer protections, Kalshi has introduced a range of voluntary measures aimed at preventing underage access and encouraging responsible trading. These include Face ID checks launched in May to block minors from accessing their parents’ accounts, alongside two-factor authentication and enhanced selfie verification requirements for users aged 18 to 21.

Kalshi has also established proof-of-funds requirements for certain users and implemented prompts to promote deposit limits and responsible trading practices. Furthermore, the company has made resources available for parents and families and has committed $2 million to support trader health and safety initiatives in collaboration with the National Council on Problem Gambling.

The legislation introduced by Gottheimer seeks to establish these protective measures as a national standard for sportsbooks and prediction markets, requiring many online platforms to adopt technologies that are not currently part of their standard verification processes.

While operators like DraftKings and FanDuel conduct know-your-customer (KYC) checks during account creation, they typically do not require facial recognition for every login or bet placement. Some states, including Ohio and Pennsylvania, do mandate two-factor authentication for each login.

There have been attempts at the state level to enforce biometric checks for every login, with New York being one example where the state gaming regulator has released draft regulations proposing such protections.

This bill arrives amidst ongoing discussions regarding the minimum age requirements for prediction markets, which are generally lower than those for regulated online sportsbooks.