Lawmakers Push Facial Recognition Age Checks for Sports Betting & Prediction Markets

Americans wagered approximately $160 billion on sports betting last year, generating roughly $16 billion in industry revenue. For this reason, lawmakers have introduced bipartisan legislation requiring facial recognition technology for age verification on all sportsbook platforms. The proposed bill addresses growing concerns about underage gambling access, in particular after data revealed that 36% of boys aged 11 to 17 gambled in the past year, rising to 40% among boys aged 14 to 17. Current verification systems have failed to prevent underage participation, with more than 80 reports of underage betting in Iowa and more than 400 underage sportsbook accounts identified in Tennessee in 2024. The legislation seeks to establish stricter safeguards across prediction markets sports betting platforms, drawing support from industry leaders and advocacy groups concerned about youth gambling exposure.

Gottheimer Introduces Bipartisan Bill Requiring Facial Recognition for Age Verification

U.S. Rep. Josh Gottheimer introduced bipartisan legislation Wednesday requiring online sportsbooks and prediction markets sports betting platforms to implement facial recognition technology for age verification before users place bets or trades. The proposed Facial Recognition to Protect Children Act mandates platforms to estimate user age by analyzing facial structure and patterns, either during account login or before placing a wager.

According to Gottheimer’s office, the technology would not store user identity or personal biometric information. The congressman emphasized the failure of current systems, stating that kids can log into a parent’s, older sibling’s, or friend’s account and place bets with no verification at all.

The bill garnered bipartisan support from Representatives Jeff Van Drew (R-N.J.), Nick LaLota (R-N.Y.), Kristen McDonald Rivet (D-Mich.), Jimmy Panetta (D-Calif.), Darren Soto (D-Fla.), Tom Suozzi (D-N.Y.), Ritchie Torres (D-N.Y.), and Bruce Westerman (R-Ark.). Van Drew noted the legislation would add another safeguard to prevent children from accessing betting platforms and provide parents additional peace of mind. Rep. Ritchie Torres stated the honor system has failed kids, allowing underage users to bypass basic age restrictions with zero accountability.

If enacted, the legislation would apply to all online sportsbooks and prediction market platforms nationwide.

Why Current Age Verification Systems Fail to Prevent Underage Gambling

Prediction markets sports betting platforms operate with a minimum participation age of 18, while state-regulated online sportsbooks require users to be 21 years old. This disparity exists because prediction markets claim oversight by the federal commodities regulator rather than state gaming authorities, effectively sidestepping strict verification requirements. Accordingly, these platforms operate without know-your-customer protocols, anti-money laundering safeguards, integrity monitoring, or responsible gaming requirements that legal operators must follow.

The most basic age verification method requires users to input their date of birth or click a button declaring they meet age criteria. This honor system proves ineffective, as minors fraudulently insert valid dates rather than their own. Indeed, many betting platforms never request identity verification during signup. Several users reported that only one sportsbook among multiple platforms asked for photo identification, and verification occurred only after requesting withdrawals.

Minors exploit these gaps through multiple methods. Shared devices store saved passwords and payment information, allowing children to access gambling platforms through unlocked smartphones or tablets. For instance, high school students across entire baseball and football teams use sports betting accounts, often borrowing identification from older siblings, cousins, or friends to create accounts. Globally, 17.9% of youth under 18 gambled in the past 12 months, with 10.3% gambling online. North America shows the highest regional prevalence at 33.7%.

Industry Leaders and Advocacy Groups Rally Behind Stricter Safeguards

Prediction market platform Kalshi and advocacy group ParentsRISE have backed the legislation. Tarek Mansour, CEO of Kalshi, stated that protecting kids represents a priority at his company, noting they already self-regulate with measures to keep minors off the platform. Mansour emphasized that responsibility cannot rest with a single entity and must become an industry standard.

ParentsRISE expressed gratitude for action addressing harms from predatory betting apps and prediction markets to children, specifically highlighting Meta’s partnership integrating Kalshi’s real-money betting markets into Threads. The advocacy group characterized these products as engineered for compulsive use.

Kalshi has proactively implemented several safeguards beyond regulatory requirements. The platform activated Face ID by default for users with enabled devices, introduced selfie requests for higher-risk individuals, promoted two-factor authentication, and launched an ID Check feature. The company also created Inner Circle, allowing users to grant friends and family access to view trading activity with real-time alerts, plus Health Check, which provides deposit limit recommendations based on activity patterns.

Subsequently, Kalshi announced a $2 million investment in the National Council on Problem Gambling focused on expanding consumer education campaigns and promoting responsible trading. Meanwhile, the NBA, PGA Tour, and NCAA have called for regulators to raise the legal age for prediction markets sports betting to 21.