Earlier this year, New York Gov. Kathy Hochul proposed to work with the New York State Gaming Commission to implement biometric age-verification tools. This would include facial recognition and fingerprint scanning. The goal is to prevent underage users from accessing sportsbook accounts, depositing funds, and placing wagers. But during the current public comment period, the proposal has received some backlash.
In a meeting earlier this week, New York Gaming Commission Executive Director Robert Williams reported that they have received the most public comments on this biometric proposal than anything else they’ve ever introduced. Williams went on to say that a significant portion of the comments were against the use of biometric data to access sportsbooks.
The proposal from the New York Gaming Commission includes the following requirements:
The negative comments had to do with concerns that it was an invasive policy, with individuals worried about a potential data breach. The argument against this policy would be that the existing safeguards are enough. These include responsible gaming tools, age verification, and Know Your Customer (KYC) protocols.
Even though the majority of New Yorkers are against enhanced age verification through the use of biometrics, the data indicates that it could be a necessary addition. The issue of underage gambling has become a growing problem across the country.
The National Federation of State High School Associations (NFHS) recently introduced a free online course to educate sports betting risks to high students. Underage users are able to easily bypass existing age verification.
In some instances, when creating an account, users are typically not prompted to verify their age with government-issued ID and an accompanying selfie until they make a withdrawal. That means they can deposit funds without proving their age with the required documents.
By implementing more rigorous biometric requirements, this can add an extra layer of security, preventing underage users from accessing sportsbook accounts.
With a significant majority of public comments opposing the measure to enhance biometric requirements to provide stricter age verification, this could make it difficult for the changes to be implemented. The New York Gaming Commission may potentially have to make some changes to make it more suitable for approval.
The Commission has already said that it is reviewing the proposal. Executive Director Robert Williams stated that they will take a closer look at the language to make sure that it focuses on reducing underage gambling while not being too invasive.
The risk here is that if the policy is too invasive, existing users who are of age could be influenced to join offshore betting sites, which don’t have these protocols. That’s problematic for the state because it would reduce tax revenue and put players at risk, since these sites don’t have the same consumer protections in place, including responsible gaming tools.
