Facial Recognition Betting Bill Targets Sportsbooks and Prediction Markets

A new bipartisan bill in the US House would require online sportsbooks and prediction markets to use facial recognition age-estimation technology before a user can place a bet or a trade. Rep. Josh Gottheimer (NJ-5) introduced the Facial Recognition to Protect Children Act on July 15, 2026, with eight co-sponsors from both parties and public backing from Kalshi, the largest federally regulated prediction market. The measure aims to close the age gap that lets 18-year-olds trade sports contracts on venues where state sportsbooks demand a minimum age of 21.

The proposal lands in the middle of a widening fight over how prediction markets are regulated in the United States, and who is allowed to use them. It is the first federal bill to mandate a specific age-verification technology across both regulated sportsbooks and the fast-growing prediction market sector at once.

What does the Facial Recognition to Protect Children Act actually require?

The bill would require online sportsbooks and prediction markets to run facial recognition age estimation before a user can wager or trade. According to Gottheimer's office, the technology analyzes a person's facial structure and patterns to estimate their age at login or before a bet, and does not store biometric identity data or match a face to a named individual. In other words, it is an age gate rather than a surveillance database, closer to the face-scan checks already used by some online alcohol and vaping retailers.

Crucially, the check would run at the point of wagering rather than only once at sign-up. That design targets a known weakness: an adult opens an account, then hands the app to a minor, or a teenager borrows a parent's logged-in device.

Which platforms and people would it cover?

The bill covers two categories: licensed online sportsbooks and prediction markets that list event contracts. That dual scope is the point. Prediction markets such as Kalshi operate under federal Commodity Futures Trading Commission (CFTC) oversight and generally set an 18-plus minimum, while state-regulated sportsbooks such as those run by FanDuel and DraftKings require users to be 21 in most states. The legislation would apply an age-verification standard to both, regardless of which regulator sits above them.

Key facts about the Gottheimer facial recognition bill

• Bill name: Facial Recognition to Protect Children Act, introduced July 15, 2026 (source: Rep. Gottheimer's office).
• Lead sponsor: Rep. Josh Gottheimer (NJ-5), with eight bipartisan original co-sponsors.
• What it mandates: facial recognition age estimation at login or before a bet or trade, with no biometric identity stored.
• Scope: online sportsbooks and prediction markets.
• Youth gambling data cited: 36% of boys aged 11 to 17 gambled in the past year, rising to 40% for boys aged 14 to 17 (source: Gottheimer's office, citing Common Sense Media research).
• Enforcement examples: Tennessee sportsbooks flagged more than 400 underage accounts in 2024, up from roughly 100 in 2023; Iowa logged more than 80 underage betting reports.

Who is co-sponsoring the bill?

Eight House members from both parties signed on as original co-sponsors, which is what lets Gottheimer call the measure bipartisan. According to his office, they are Jeff Van Drew (NJ-2), Nick LaLota (NY-1), Kristen McDonald Rivet (MI-8), Jimmy Panetta (CA-19), Darren Soto (FL-9), Tom Suozzi (NY-3), Ritchie Torres (NY-15) and Bruce Westerman (AR-4). The spread across New Jersey, New York, Michigan, California, Florida and Arkansas signals the issue is not confined to one region or party.

Why is Kalshi supporting a bill that regulates Kalshi?

Kalshi is backing the bill because tighter, standardized age checks help legitimize prediction markets while it fends off state-level bans. The company has spent 2026 fighting individual states in court over whether its sports event contracts count as gambling, and endorsing a child-protection standard lets it argue it is a responsible, safety-first operator rather than a loophole. Kalshi CEO Tarek Mansour put it plainly.

"Protecting kids should be a no brainer and is a top priority at Kalshi." Tarek Mansour, CEO of Kalshi.

Kalshi has already rolled out voluntary safeguards, including Face ID verification as a default, two-factor authentication, login alerts, expanded selfie checks and additional friction for users aged 18 to 21. Mansour has argued age verification should become an industry standard, which is effectively what the Gottheimer bill would impose.

What problem is the bill trying to solve?

The bill responds to hard evidence that minors are already reaching betting and trading apps. Gottheimer's office cites research indicating 36% of boys aged 11 to 17 gambled in the past year, a figure that climbs to 40% among boys aged 14 to 17. Enforcement data points the same way: Tennessee regulators flagged more than 400 underage accounts on sportsbooks in 2024, up from around 100 the year before, and Iowa recorded more than 80 underage betting reports. Advocacy group ParentsRISE endorsed the measure, citing concern about what it called predatory betting apps.

How big is the market this would touch?

The bill would reach an enormous and still-growing market. Gottheimer's office frames the scale at roughly $160 billion in annual sports wagers generating about $16 billion in industry revenue in the United States. Prediction markets sit on top of that, having exploded in trading volume through 2025 and 2026 as Kalshi, Polymarket and others let users take positions on sports outcomes, elections and economic events.

Why does the age gap between sportsbooks and prediction markets matter?

The age gap matters because it lets an 18-year-old legally trade a sports outcome on a prediction market in a state where a 21-year-old rule blocks the same bet on a sportsbook. Former Rep. Mick Mulvaney has argued prediction market operators have "effectively reset that threshold to 18, not through legislation but through regulatory gamesmanship." In states such as South Carolina, where traditional sports betting is banned outright, prediction markets have still been available, sharpening the concern that federal derivatives rules are bypassing state gambling law.

How does this fit the wider crackdown on prediction markets?

The facial recognition bill is one of several 2026 measures aimed at prediction markets and youth exposure. Senators have advanced the GAME Act, backed by Katie Britt and Richard Blumenthal, which would ban targeted gambling ads on social media with penalties up to $100,000 per ad. A separate Curtis and Schiff proposal would bar CFTC-registered entities from listing contracts that resemble sports bets. Blumenthal has accused operators of "treating young people like a gold rush, flooding the internet with advertisements."

What do regulators say about who has jurisdiction?

Jurisdiction is the core unresolved question, and it is why this bill exists. CFTC Chair Mike Selig maintains that prediction markets fall under federal commodities jurisdiction rather than state gambling law, a stance that has repeatedly clashed with state regulators. Several states have tried to block Kalshi's sports contracts, and the disputes have already produced court fights and cease-and-desist orders. A federal age-verification standard would sidestep that patchwork by setting one rule that applies no matter which regulator claims authority.

Comparison: sportsbooks vs prediction markets on age rules

Factor	Licensed sportsbooks	Prediction markets (e.g. Kalshi)
Primary regulator	State gaming regulators	CFTC (federal)
Typical minimum age	21 in most states	18
Current age check	ID and data matching at sign-up	Selfie and Face ID (voluntary at Kalshi)
Under the Gottheimer bill	Facial age estimation before a bet	Facial age estimation before a trade

What are the privacy and feasibility questions?

The obvious tension is running face scans on millions of users while promising not to store their biometric identities. Gottheimer's office stresses the technology estimates age from facial patterns without keeping identity data, which is meant to blunt privacy objections. Even so, facial age-estimation tools carry an error margin, can perform unevenly across demographics, and would need a fallback path for adults the system misjudges. The bill's published text did not specify penalties for non-compliance, and lawmakers will have to define enforcement as it moves through committee.

What happens next?

The bill now heads into the House committee process, where its scope, penalties and technical standards can change or stall. Introduction with eight bipartisan co-sponsors and an endorsement from the sector's biggest prediction market gives it more momentum than a typical message bill, but age-verification mandates have historically faced privacy pushback and questions about who certifies the technology. For operators, the signal is clear: age verification is shifting from a competitive courtesy to a likely federal requirement.

Frequently asked questions

What is the Facial Recognition to Protect Children Act?

It is a US House bill introduced on July 15, 2026 by Rep. Josh Gottheimer that would require online sportsbooks and prediction markets to use facial recognition age estimation before a user can bet or trade.

Does the bill store people's faces or identities?

According to Gottheimer's office, no. The technology estimates age from facial structure and patterns and does not store biometric identity data or link a face to a named person.

Why is Kalshi supporting the bill?

Kalshi CEO Tarek Mansour has called protecting minors a top priority and wants age verification to become an industry standard. Backing the bill also helps Kalshi position itself as a responsible operator amid state-level legal fights.

Why do prediction markets allow 18-year-olds when sportsbooks require 21?

Prediction markets operate under CFTC federal oversight, which generally sets an 18-plus minimum, while state-licensed sportsbooks require 21 in most states. The bill would apply one age-verification standard to both.

What penalties does the bill impose?

The published summary did not specify penalties for non-compliance. Enforcement details would be defined as the bill moves through the House committee process.

Updated July 2026. This is trade news for readers aged 18 and over. Gamble responsibly.

Sources: Office of Rep. Josh Gottheimer, Gambling Insider, The Hill.