A new bill in Congress strives to mandate the use of facial recognition technology across sportsbooks and prediction markets, requiring operators to verify users’ ages before bets or trades can be placed. U.S. Representative Josh Gottheimer put forth the “Facial Recognition to Protect Children Act” on Wednesday.
The measure would force platforms to analyse facial features at login or during a wager to confirm a user’s age. Gottheimer’s office also highlighted that the process would not store identities or biometric data. The bill is expected to be referred to the House Committee on Energy and Commerce or Judiciary, given its focus on technology and consumer protection.
Research and concerns
According to Common Sense Media, a non-profit organisation, 36 per cent of boys ages 11 to 17 reported gambling in the past year, with the data rising to 40 per cent among those ages 14 to 17. Gottheimer also cited documented cases of underage betting in Iowa where more than 80 incidents have been recorded and over 400 accounts flagged in Tennessee in 2024.
But the use of this type of technology raises privacy concerns. Biometric data storage, for instance, as well as surveillance and compliance, clash with data protection laws. Furthermore, while these platforms claim not to retain identities, experts remain hesitant, as this technology can create “data honeypots” that can, in turn, be used for various purposes.
Other risks include the failure of these safeguards, which could affect operators’ compliance costs and reputation. Smaller operators could also face market disruption if compliance costs outweigh profitability.
Moreover, being accurate poses another challenge. The latest evaluations reported mean errors of 2-4 years, contingent on conditions, with performance failures due to poor lighting, angled poses, or across diverse demographics.
Yet regulators continue to see this technology as “highly effective” when coupled with liveness detection and multi-factor checks.
Bipartisan and industry support
The proposal has bipartisan backing and multiple co-sponsors. If enacted, it would apply nationwide to online sportsbooks and federally regulated prediction market platforms. Prediction market operator Kalshi and advocacy group ParentsRise have voiced support, stressing the importance of child protection as sports betting and market trading grow in popularity.
Industry representatives attended the bill’s unveiling. Kalshi CEO Tark 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.”
At the moment, Michigan is the only state implementing biometric authentication in its Lawful Gaming Act and Lawful Sports Betting Act. In 2024, the Michigan Gaming Control Board (MGCB) issued a memorandum mandating that operators use at least two authentication processes, which may include biometric data, a valid ID card, and user-specific information such as a passcode.
Major operators like DraftKings and FanDuel already offer facial recognition as a login option. But the technology is not widely used for age verification. Internationally, biometric age verification is becoming more widely accepted, with regulators in the UK, Australia, Brazil, the Philippines, and the EU adopting systems that encourage or require such checks to prevent underage access.
Subscribe HERE to SiGMA’s Top 10 News countdown and SiGMA’s weekly newsletter to stay up to date with all the latest iGaming News from the world’s iGaming authority, and benefit from subscriber-only offers.
