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State of Play’s TL;DR
- A federal proposal tied to online betting age checks could eventually affect how sportsbooks and prediction markets verify users.
- Rep. Josh Gottheimer of New Jersey has introduced House Bill 9706, the Facial Recognition to Protect Children Act, which would require facial recognition software for sportsbooks and prediction markets.
According to The Lines, Rep. Josh Gottheimer (D-NJ) has proposed legislation that would require facial-recognition age verification for online sportsbooks and prediction markets. The bill has nine sponsors.
Kalshi CEO Tarek Mansour appeared with Gottheimer and expressed full support for the measure. The proposal is aimed at preventing underage users from getting into accounts they should not be using. Prediction markets generally require users to be 18 or older, while gambling typically requires bettors to be 21 or older.
Bill could linger to next year
For operators, the proposal points to a stricter identity-checking standard than many players are used to today. The Lines also suggests some sportsbooks could move on their own by adding stronger safeguards such as two-factor authentication if the bill gains traction.
The bill could face a Tenth Amendment challenge similar to the one that helped bring down PASPA in the Supreme Court’s 2018 Murphy v. NCAA decision. One possible amendment mentioned in the report is an opt-out procedure for states.
Its path through Congress also looks difficult in the near term. The House’s current session is scheduled to end July 23, with members returning Sept. 14. The Senate remains in session through Aug. 7. Based on that calendar, HB 9706 is unlikely to come to a vote before the November elections.
If operators decide to act before Congress does, players could see more identity checks or added login protections. That may create more friction, but it would be tied to the same goal behind the bill: keeping minors out of betting accounts.
Based on reporting by Dan Angell for The Lines.
