Gottheimer backs bill requiring facial ID for online betting

Rep. Josh Gottheimer introduced the Facial Recognition to Protect Children Act on Wednesday. The bipartisan bill would require online sportsbooks and prediction markets to use technology that estimates a user’s age from facial features when they log in or before they place a bet or trade. Gottheimer’s office said the systems would not retain users’ identities or raw biometric data.

The bill lists co-sponsors from both parties including Jeff Van Drew, Nick LaLota, Kristen McDonald Rivet, Jimmy Panetta, Darren Soto, Tom Suozzi, Ritchie Torres and Bruce Westerman. The proposal names prediction market operator Kalshi and parents’ advocacy group ParentsRISE as supporters. Gottheimer said, ‘We’re asking our kids to self-police their way past a system built entirely on the honor code.’ Tarek Mansour, Kalshi’s CEO, described protecting minors as a top priority and urged industry adoption of stronger age checks.

The requirement would add an age-estimation check to standard account verification. Major operators such as DraftKings and FanDuel perform know-your-customer checks and verify identity and age when accounts are opened, but they generally do not require facial recognition at every login or wager. Some states already require additional safeguards: Ohio and Pennsylvania mandate two-factor authentication for every login, and New York regulators have proposed draft rules that include biometric protections.

Gottheimer’s office cited rising reports of underage betting to justify the bill. The office pointed to data showing spikes in flagged underage accounts in some states, including more than 400 such accounts flagged in Tennessee in 2024 compared with roughly 100 in 2023. The office also referenced research finding that 36% of boys ages 11 to 17 reported gambling in the past year.

Kalshi has rolled out several voluntary consumer protections in recent months. Measures include Face ID checks intended to block minors from using parents’ accounts, two-factor authentication, expanded selfie verification, extra safeguards for users aged 18 to 21, proof-of-funds requirements for some traders, and in-platform prompts encouraging deposit limits and responsible trading. The company has also pledged $2 million to support trader health and safety through a partnership with the National Council on Problem Gambling.

The bill appears amid debate over age limits for prediction markets. Regulated online sportsbooks typically set a minimum age of 21, while prediction markets generally allow users 18 and older. State regulators, addiction experts and some sports leagues have called for raising the minimum age for certain event contracts to 21, citing concerns about access to gambling-like products by younger users.

Efforts to create federal gambling standards have seen limited progress. Lawmakers have repeatedly proposed national guidelines on advertising and consumer protections without enactment. Representative Paul Tonko has pushed for federal advertising standards in multiple sessions, and a proposal last year suggested a federal tax on online gambling and prediction markets. It is not yet clear whether the facial recognition bill will gain enough support to become law.