Kalshi to Add Parent Verification, AI Face Checks to Block Underage Users

YM Lee

Summary

Kalshi said it is introducing a parent verification system and AI-based identity verification features to block minors from bypassing account restrictions.
The company said the move comes as regulatory pressure across the US prediction-market industry intensifies, with tougher enforcement from state regulators and controversy at the federal level.
As Binance and Crypto.com expand prediction-market-related services and competition intensifies, Kalshi said it continues to maintain that it falls under the CFTC's sole jurisdiction.

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Kalshi, the US prediction-market platform, is introducing a parent verification system and artificial intelligence-based identity checks to stop minors from bypassing account restrictions.

Cointelegraph reported on July 15 that Kalshi co-founder and Chief Executive Officer Tarek Mansour told Semafor the company plans to launch a "parent portal." The feature would allow parents to submit identification directly to confirm whether their children are using an account. The move follows cases in which some minors used their parents' IDs to get around age limits.

Kalshi also plans to add selfie verification to confirm the identity of the actual user. Mansour said that would help detect whether a minor is using an account registered to a 50-year-old parent. The company plans to use AI-based facial recognition to verify whether the account holder matches the person actually using the account.

The move comes as regulatory pressure builds across the US prediction-market industry. State regulators are stepping up enforcement, particularly around sports-event contracts. At the federal level, betting on sensitive matters such as military action has also drawn controversy.

Competition is also intensifying. Binance recently added prediction-market features to its wallet application, while Crypto.com is expanding related services. Kalshi has maintained that it falls solely under the jurisdiction of the Commodity Futures Trading Commission. Litigation is continuing after some federal courts limited the application of state gambling laws.