The convenience of online gambling is undeniable, but it also brings challenges—one of the most critical being underage gambling.
Earlier this year, the CS Moth Children’s Hospital National Poll on Children’s Health revealed that 2% of parents surveyed believe their teenager has used an online betting platform. This percentage is higher among parents of teen boys (3%) compared to girls (0.4%).
Additionally, the poll found that 31% of parents report that they or another adult in their household participate in online, in-person, or social betting.
While 55% of parents are confident they would know if their teen was betting online, 30% think they might know, and 16% believe they probably wouldn’t.
The rise in underage gambling poses a significant challenge not only for parents but also for regulators and the gambling industry. As online casinos strive to stay a step ahead, they are turning to sophisticated technologies and stringent verification methods to combat this growing issue.
Young and at Risk: The Dangers of Underage Gambling
Underage gambling can have severe psychological, social, and financial consequences. Here’s how it can impact young lives:
Psychological Impact of Gambling at a Young Age
The American Psychological Association (APA) emphasizes that young people, particularly males, are especially vulnerable to gambling addiction due to the developmental stage of their brains. Research shows that the adolescent brain’s reward system, which is still developing in adolescents, responds more strongly to the excitement and potential rewards of gambling.
The APA also notes that the accessibility of online gambling and its normalization through advertising further heighten the risks for young people.
How Social Connections Can Also Be Severed by Gambling
Socially, underage gambling can lead to damaged relationships and poor academic performance. Adolescents who gamble are more likely to engage in delinquent behaviors, such as truancy and substance abuse. The social stigma associated with gambling can also lead to isolation and a breakdown in family and peer relationships.
According to a study by BMC Psychiatry, adolescents who gamble are more likely to experience lower family life satisfaction and higher levels of risk behavior. This study was done with the Canadian Adolescent Gambling inventory, but similar patterns have been observed in the U.S.
For instance, a story reported by ABC News highlighted the case of an 18-year-old named Steve, who started gambling at 15. His addiction resulted in significant debt, strained family ties, and even theft to repay his debts.
Additionally, the National Council on Problem Gambling reveals that between 60% to 80% of high school students in the U.S. have gambled for money in the past year, and up to 6% are considered at risk of developing gambling problems. This aligns with the findings from the BMC Psychiatry study and highlights the widespread nature of adolescent gambling in the U.S.
Financial Turmoil
Then, of course, there is a significant impact on finances. Young gamblers often start with small bets, but as their addiction grows, they may resort to borrowing or stealing to sustain their habit.
This behavior can lead to severe financial problems, including mounting debt and poor money management skills.
The long-term consequences can be devastating, as early gambling habits are often linked to long-term financial instability in adulthood.
Legal Requirements of Gambling in the US
In the United States, the legal gambling age varies by state and type of gambling activity. Generally, the minimum age for casino gambling and online gambling is 21, but some states permit gambling at 18 for specific activities, such as lottery games and horse racing.
For example, in states like California and Michigan, the legal age for casino-style gambling ranges from 18 to 21, depending on the establishment.
Online casinos are required to implement strict age verification processes to prevent underage gambling. Failure to comply with these regulations can lead to severe penalties. Online casinos that allow underage gambling can face fines, license suspensions, or even permanent bans from operating in certain states.
Additionally, underage gamblers themselves may face legal consequences, such as fines, community service, or probation.
Online Casino Verification Process: How Online Casinos Prevent Underage Gambling
Online casinos now employ advanced measures to prevent underage gambling, with a strong focus on Know Your Customer casino processes like age verification tools and account restrictions. These steps are essential parts of the KYC processes, which ensure that users meet the legal age requirements before accessing online KYC gambling services.
Age Verification Online Gambling Tools
Age verification is a critical element of the online gambling verification process. Online casinos use several tools to confirm the age of their users, including:
- Government-issued ID checks. Players must upload a driver’s license or passport – any government-issued ID online casinos accept, verified against official records to confirm their age.
- Biometric verification. Some casinos use facial recognition technology to estimate the user’s age and authenticate their identity.
- Credit card verification. This type of verification is also used, which involves cross-checking credit card details to validate the user’s age and ensure compliance with casino KYC requirements.
Specialized platforms like AgeChecker.Net and Yoti provide seamless integration with casino systems and offer comprehensive ID verification solutions for online gaming. These measures ensure a safer gambling environment by preventing unauthorized access and maintaining compliance with legal standards.
The Future of Prevention: AI and Beyond
While most online casinos already have strong regulations in place to combat underage gambling, there’s still more that can be done. With advancements in technology, particularly in artificial intelligence (AI) and biometric scanning, the future of prevention looks promising.
Artificial Intelligence (AI)
AI has become a game-changer in many industries, and online gambling is no exception. The integration of AI in online casinos is revolutionizing how operators detect and prevent underage gambling.
AI algorithms can analyze vast amounts of data in real time. They can now identify patterns and behaviors that might indicate underage gambling. AI can be used to monitor the frequency and duration of a user’s sessions. It can help online casinos flag accounts that show unusual activity patterns typical of underage users.
AI also plays a vital role in enhancing the Know Your Customer (KYC) casino process online. Traditional KYC procedures can be time-consuming and prone to errors. However, AI-powered systems streamline this process by automating identity verification.
These systems can cross-reference data from various sources, such as government databases and social media profiles, to ensure that the user’s information is accurate and that, based on the user’s location, they meet the legal age requirements.
Moreover, AI can detect fake IDs more effectively than human operators. Advanced AI systems use machine learning algorithms to analyze the characteristics of an ID, such as font, layout, and security features. They can also compare them against a database of known legitimate IDs.
Biometric Scanning
Biometric scanning is another technology that is set to play a significant role in preventing underage gambling. This technology verifies users’ identities through unique biological traits such as facial recognition, fingerprints, or iris scans. Unlike traditional identity verification methods, biometric scanning is highly secure and difficult to forge.
Facial recognition technology, for example, can be used to ensure that the individual creating an account matches the ID submitted. It captures a live image of the user’s face and compares it with their government-issued ID. Advanced systems can even differentiate between a live person and a photograph for enhanced casino security.
Fingerprint scanning is another biometric method that can be employed. Users can register their fingerprints as part of the account creation process. When they log in, the system can verify their identity by scanning their fingerprint.
There are already online casinos that support this feature, usually casino operators with downloadable betting apps like BetMGM and Inclave Casinos.
A Safe Bet: Protecting Young People from Gambling Harms
The convenience and accessibility of online gambling platforms make it increasingly challenging for parents, regulators, and the industry to protect young people from these dangers.
However, through the use of advanced age verification tools, AI-driven monitoring systems, biometric technologies, and stringent legal requirements, KYC casino sites are taking significant steps to reduce the risks of underage gambling.
Still, it’s crucial for parents to stay vigilant and use available technologies and parental controls to safeguard their children from the risks associated with gambling. Educating young people about the potential dangers and encouraging open communication within families can also play a vital role in prevention.
Even if online casinos have ways to verify the age of their customers, parents are still largely responsible for what their household can access on the Internet. It may be a good idea to set up parental control software like Net Nanny, Qustodio, and Norton Family to help monitor and even restrict the household’s online activities.
