Ohio detects millions in illegal bets by minors bypassing app controls
An analysis by USA TODAY reveals the magnitude of the challenge for operators like DraftKings and FanDuel. Despite biometrics and geolocation, minors use their parents' identities or stolen data to gamble, exposing the industry to new class-action lawsuits.
The online gambling industry in the United States faces increasing scrutiny after it was revealed that thousands of minors manage to bypass age verification barriers every year. A recent report, based on data from state regulators, shows that not even sophisticated Know-Your-Customer (KYC) systems are fully stopping the ingenuity of teenagers, who resort to identity fraud or use family members' accounts to place bets.
The problem becomes urgent on the eve of the Super Bowl between the Seahawks and the Patriots, an event expected to generate between US$1.5 and US$1.7 billion in legal bets, acting as a magnet for new users, including those who are prohibited.
The numbers of the problem: Millions at stake
Analysis of fraud reports in key states reveals worrying data. In Ohio, the Casino Control Commission reported that since 2023, DraftKings generated 620 reports of underage gambling totaling the astonishing amount of US$2.78 million in bets. Meanwhile, FanDuel recorded 162 reports linked to more than US$63,000.
In Massachusetts, DraftKings' proactive defense blocked 4,800 attempts by minors to register last year and suspended 243 active accounts. In Tennessee, incidents reported to the Sports Betting Council quadrupled, rising from 105 in 2024 to more than 400 last year.
The technological and advertising dilemma
Operators defend their technological shields: precise GPS tracking (via GeoComply) to prevent bets from schools and requirements for selfies with identity documents. However, current class-action lawsuits argue that this is insufficient. Critics point out that massive advertising on social media and television, targeted at the male demographic aged 21 to 34, inevitably "spills over" onto teenagers.
Jordan Maynard, chairman of the Massachusetts Gaming Commission, summarizes the current regulatory stance: prioritizing education over criminal punishment. "We have to use the regulatory toolbox to be honest about this problem and educate parents and minors, rather than just seeking penalties," he stated.
Tags: United States, USA, minor online betting, underage betting control