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US Bill Proposes Facial Recognition for Online Sportsbooks

US Bill Proposes Facial Recognition for Online Sportsbooks
US Bill Proposes Facial Recognition for Online Sportsbooks
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The United States is considering a new approach to age verification in the gambling industry. Rep. Josh Gottheimer has introduced the Facial Recognition to Protect Children Act, a bipartisan bill that would require online sports betting platforms to use facial recognition technology to verify users’ ages. This legislation, supported by several representatives and the parents’ group ParentsRISE, aims to establish a uniform federal standard across platforms, replacing the current reliance on preliminary know-your-customer (KYC) checks.

Legislative Push for Uniform Standards

The bill mandates that platforms analyze facial structures to estimate age either at login or before a wager is placed. This approach reflects a shift from the existing honor-based system that Gottheimer criticizes as inadequate, particularly when minors can easily access an adult’s betting account. β€œWe wouldn’t accept that at a casino in Las Vegas. We shouldn’t accept it on the phone in our kid’s back pocket,” Gottheimer stated. Currently, regulated sportsbooks in the U.S. typically enforce a minimum betting age of 21, while prediction markets usually permit users from age 18. The introduction of this bill follows reports of increasing underage gambling, with Tennessee sportsbooks reporting over 400 flagged accounts in 2024, up from about 100 the previous year. Iowa authorities have also noted more than 80 cases of underage betting.

Context and Industry Concerns

This isn’t the first time the gambling industry has faced pressure over age verification issues. There’s been a growing call for more stringent regulations, reflecting broader concerns about gambling’s accessibility to minors. Industry data show a major gap in enforcement, with many operators relying on basic age checks at the point of account creation, which don’t prevent unauthorized access later on. While proponents like ParentsRISE argue that the bill could shield children from “predatory betting apps,” it’s unclear how operators will implement such technology without storing personal biometric data, a concern for privacy advocates. The bill specifically states that the technology must not store users’ identities or personal data, aiming to alleviate some of these concerns.

Regulatory and Market Implications

If passed, this legislation would mark a major regulatory change, requiring compliance across all online betting platforms. This adds another layer of complexity to an industry already navigating diverse state-by-state regulations. Analysts have previously noted that implementing new technologies can be a resource-intensive process, potentially impacting smaller operators more severely. But the bill’s introduction comes as federal scrutiny of gambling regulations intensifies, a trend that’s been seen in other regulatory domains as well. Still, the timing is notable β€” with the annual regulatory review cycle approaching, operators may soon need to adjust swiftly to meet potential new standards. Next steps remain uncertain. The bill still needs to pass through several legislative hurdles, with debates expected on both practical implementation and privacy safeguards. The measure’s impact on the industry will depend on these discussions, as operators brace for possible changes.

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