Kalshi Targets Underage Access Problem With New Parent Verification System And AI Tools For Identity Confirmation

Minors bypassing age verification on prediction markets has prompted Kalshi to tighten its controls, with the company rolling out new tools aimed at stopping underage access and strengthening identity checks across its platform.

Parent Portal Targets ID Misuse Among Families

Kalshi co-founder and chief executive Tarek Mansour said the firm is preparing to launch a “portal for parents” designed to help detect when a child may be using a parent’s identity to access the platform.

Speaking at the Semafor World Economy conference in Washington, DC, Mansour explained the idea behind the system:

“We are launching a portal for parents to basically submit their identification, even if they don’t want to be users of Kalshi, to see if someone is using it. Because then they can see if their children are using their ID and police it.”

The system is designed to tackle cases where minors bypass the US 18+ requirement by registering with a parent’s personal details, including sensitive identity information.

Selfie Verification And AI Checks To Flag Fake Identities

Alongside the parent portal, Kalshi is introducing selfie-based verification during account setup, with artificial intelligence used to compare facial images against submitted ID documents.

Mansour said,

“We are also adding selfies to accounts, where you can basically look at the face of a person, and it can tell you obviously if this person is not the actual parent that’s 50 years old.”

He added that further safeguards are still being developed.

The aim is to reduce cases where accounts are opened using borrowed or stolen identity documents and ensure the person trading on the platform matches the verified user.

Family Accounts Bring Monitoring Features To Trading Activity

Kalshi is also exploring “family accounts”, allowing users to track activity across connected profiles, with a focus on encouraging accountability within households and social circles.

Mansour said,

“How do we kind of create a sort of accountability structure amongst friends and families for people to be like, ‘Hey, you might be doing a little too much here.’ We want this to be a tool for good, not a tool for excessive behaviors.”

The feature would allow shared oversight of trading behaviour, adding another layer of monitoring beyond standard account controls.

Regulatory Pressure Builds As States Challenge Prediction Markets

The move comes as prediction markets face increasing scrutiny across the United States, particularly over sports-related contracts and gambling classifications.

Kalshi recently faced a $5 million fine in Ohio, where regulators raised concerns that users under 21 could access the platform despite state-level gambling restrictions. Federal rules for prediction markets set the minimum age at 18.

At the centre of Kalshi’s legal position is its argument that it falls under the exclusive oversight of the US Commodity Futures Trading Commission (CFTC), rather than state gambling regulators.

The agency has fewer than 600 staff, according to government records, and has taken a limited enforcement approach in some areas of compliance, focusing on willful breaches rather than technical violations.

Court Battles And Rival Platforms Add Pressure On Kalshi

Legal disputes continue across several states, with courts split over how prediction markets should be regulated.

A federal judge in Arizona recently blocked state authorities from enforcing gambling laws against Kalshi’s event contracts, following a similar ruling in New Jersey where a federal appellate court found that federal commodities law may override state gambling rules.

At the same time, competition in the sector is increasing.

Binance has recently introduced prediction market features within its wallet app, while Crypto.com has partnered with High Roller Technologies to expand similar offerings, adding further pressure on Kalshi’s position in the market.