On Wednesday, U.S. Representative Josh Gottheimer unveiled bipartisan legislation aimed at enhancing age verification for online sportsbooks and prediction markets through facial recognition technology. This initiative seeks to combat underage gambling effectively.
The proposed law, named the Facial Recognition to Protect Children Act, is supported by prediction market operator Kalshi and the advocacy group ParentsRISE. It mandates that platforms utilize facial recognition to assess a user's age during login or before they place any bets. Importantly, the legislation clarifies that this technology will not retain users' identities or any personal biometric data.
Gottheimer emphasized the inadequacy of the current system, stating, “We’re asking our kids to self-police their way past a system built entirely on the honor code. A kid can log into a parent’s or older sibling’s account and place a bet without any verification. Nobody checks. That’s the whole system.” He further asserted that such laxity would not be tolerated in a Las Vegas casino, and it should not be acceptable on mobile devices either.
This legislative move comes at a time when prediction markets are gaining traction, prompting lawmakers to examine the protections in place to prevent minors from accessing gambling platforms.
According to Gottheimer's office, Americans placed around $160 billion in sports wagers last year, yielding approximately $16 billion in revenue for the industry. The release noted that 36% of boys aged 11 to 17 engaged in gambling activities over the past year, with this figure rising to 40% among those aged 14 to 17. Furthermore, there have been over 80 reported instances of underage betting in Iowa and more than 400 underage sportsbook accounts identified in Tennessee in 2024.
Kalshi's CEO, Tarek Mansour, stated that the company already implements measures to prevent minors from using its platform but supports the establishment of similar protections as a standard across the industry. “Protecting kids should be a no-brainer and is a top priority at Kalshi,” Mansour remarked. “Beyond what’s required of us, we already self-regulate and have a suite of measures in place to keep minors off our platform. But this can’t just be one company’s responsibility — it has to be an industry standard.”
In addition to the proposed legislation, Kalshi has initiated further child-safety protocols, including making facial identification the default for users with this feature enabled on their devices, promoting two-factor authentication, and implementing account-monitoring tools and selfie verification for higher-risk logins.
ParentsRISE expressed gratitude for the legislative efforts, stating, “We’re grateful to see action taken to address the harms of predatory betting apps and prediction markets to children. Meta has already struck a partnership integrating Kalshi’s real-money betting markets into Threads. We are glad these members see the threat of this next wave of products engineered for compulsive use.”
The bill has garnered support 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.
Congressman Van Drew noted, “Prediction markets are becoming more popular, and we need to be realistic about the risks that can come with that for our children. Kids should not be able to get onto these platforms and start placing bets. This bill puts another protection in place to help stop that from happening and gives parents some added peace of mind.”