when you are too young for sportsbook but old enough for prediction market.

[Sanitough]

I read a report saying that around $5 billion in Kalshi sports trading volume came from users aged 18 to 20. We all know that many sportsbooks only allow gamblers who are 21 years old and above. This makes me question the regulation. An 18-year-old may not be allowed to place a sports bet on a sportsbook, but can still put money on a sports prediction market.

If both involve risking money on the outcome of a sports event, why do they have different age requirements? Is there really enough difference between the two to justify that?

[YellowSwap]

Thanks for bringing this to the forum, I think once upon a time it was the same with online casinos, and today they restricted underages but prediction market hasn't, which makes sense, not to me though but to them.

Let the highest peak damage be done first before we start restricting underages, because tell me how the hell this is happening and no one is complaining about it yet.

I feel they knew what they are doing, when they are done and the damages is climbing they will come out as the saviours who saved the day.

[Oshosondy]

The problem is that there is no clear regulations and there are loopholes sometimes. If a countries do not allow people to gamble until the age of 21 years, the regulators in the country should also make sure that prediction markets that are legal in the country should let people that can make predictions on their site to be at least 21 years old. But sometimes there could be loopholes or the regulators may not know fast. And if they know sometimes, nobody know the politics that is going on underneath.

Edit:
In many countries that 21 years is the legal age for gambling, the legal age for trading is 18 just like in the United States. Prediction markets are treated as trading in the United States.

[Sanitough]

The problem is that there is no clear regulations and there are loopholes sometimes. If a countries do not allow people to gamble until the age of 21 years, the regulators in the country should also make sure that prediction markets that are legal in the country should let people that can make predictions on their site to be at least 21 years old. But sometimes there could be loopholes or the regulators may not know fast. And if they know sometimes, nobody know the politics that is going on underneath.

The regulation is already clear, but since prediction markets and sportsbooks are not regulated the same way, they also don't have the same age requirements.

But seeing billions of dollars coming into Kalshi, especially from younger users, it's obvious that many of them probably see what they're doing as gambling anyway.

So for me, the issue is not that the regulation is unclear. It just needs to be reviewed. If sports prediction markets are already becoming this similar to sportsbooks, then maybe the minimum age should also be adjusted to 21.

[Elainebue]

I think the difference is mostly how they're legally classified. A sportsbook is gambling while a prediction market is treated more like trading

[Russlenat]

So for me, the issue is not that the regulation is unclear. It just needs to be reviewed. If sports prediction markets are already becoming this similar to sportsbooks, then maybe the minimum age should also be adjusted to 21.

Now that prediction markets are really becoming popular, I’m sure regulators will review this and we may eventually see changes where only those 21 years old and above can participate, especially in sports prediction markets.

We may call it a prediction market, but when people are putting money on sports outcomes, it is hard to deny that it already feels very similar to gambling.

And with the huge volume reportedly coming from 18–20-year-old users, that should already be a warning sign for regulators and the government to look at the age requirement more closely.

[bakasabo]

The problem is that there is no clear regulations and there are loopholes sometimes. If a countries do not allow people to gamble until the age of 21 years, the regulators in the country should also make sure that prediction markets that are legal in the country should let people that can make predictions on their site to be at least 21 years old. But sometimes there could be loopholes or the regulators may not know fast. And if they know sometimes, nobody know the politics that is going on underneath.

Until there is no info about number of addicted to prediction market (or it is, but social media prefer to keep silent about it), there wont be strict regulation. If little amount of people are talking about it - then it is not a problem. Something similar was when youngster were too young to vote, but old enough to join army. While prediction markets are on hype and keep bringing money, people with power will be blind towards problem of age inequality for gambling and making prediction.

[Bryan jessy]

There is a difference between this two though they are both gambling, you know majority of these sportsbook are licensed and monitored by some government agencies which makes it difficult for people or underage to have unauthorized access to, also some sportsbook requires KYC verification which is another difference, unlike the prediction market that everyone has access to so far they have the funds to bet with, the sportsbook is more coordinated than the prediction market, so I will not be surprised if the prediction market are doing better financially than the sportsbook, the prediction market pave way for underage bettors to participate in gambling games as it has no regulatory bodies to monitor it.

[Questat]

If little amount of people are talking about it - then it is not a problem.

$5 billion is not a small amount. There must already be a lot of people aged 18 to 20 putting money into prediction markets, so I think that should already be alarming.

Some countries have banned prediction markets, but with this kind of volume, clearly a huge amount is still coming from places where they are allowed or regulated.

Right now, the bigger concern around prediction markets seems to be insider information and manipulation, but I think younger users gambling through these platforms should also get more attention from regulators.

[hedgeh0g]

I read a report saying that around $5 billion in Kalshi sports trading volume came from users aged 18 to 20. We all know that many sportsbooks only allow gamblers who are 21 years old and above. This makes me question the regulation. An 18-year-old may not be allowed to place a sports bet on a sportsbook, but can still put money on a sports prediction market.

If both involve risking money on the outcome of a sports event, why do they have different age requirements? Is there really enough difference between the two to justify that?

Predictive markets generally look like rather crude products, even though they’ve been around for quite some time. They have a lot of legal issues, as the legal framework for these services is completely unregulated. While niche online casinos and bookmakers constantly monitor compliance with restrictions, giants like Kalshi and Polymarket are actually quite bad at this. They simply rake in money quickly, rewarding their users with profits.
And these services are a paradise for insiders. This is what makes many predictions there inherently unfair.

[TedMosby]

I think the general reason is probably the way the regulator (and most of us) treats prediction markets as platforms for trading predictions, unlike sports betting or casinos that are mostly pure gambling.

In sports betting or casinos, we play against the bookmaker. Odds are set by them, and players have less control apart from just placing a bet and waiting for the outcome. But in prediction markets, players play against other players. Odds are determined by players who also place bets on the same market. By understanding this, it's purely like supply and demand.

I also found out that the 21 years old restriction on casinos is probably just a standard age following land based casino regulations. Land based casinos use the 21 years old restriction because they are often closely linked to alcohol.

[bakasabo]

If little amount of people are talking about it - then it is not a problem.

$5 billion is not a small amount. There must already be a lot of people aged 18 to 20 putting money into prediction markets, so I think that should already be alarming.

Some countries have banned prediction markets, but with this kind of volume, clearly a huge amount is still coming from places where they are allowed or regulated.

Right now, the bigger concern around prediction markets seems to be insider information and manipulation, but I think younger users gambling through these platforms should also get more attention from regulators.

I meant little amount of person are talking about addiction from prediction market. In situation with gambling, internet is full of stories and examples of addiction. Addiction is also shown in TV. Have you heard much about people who are addicted to making prediction on politics, climate or economics? I think all we heard are addiction to sport betting and playing popular casino games (slots, poker, blackjack). When people start to talk loud how someone from their family has lost everything by betting traffic at the Strait of Hormuz for example, then attention to youngster betting on prediction market will get attention. Until then, there is no problem...

[Chibit01]

This sport book age limit is it general or just some countries keeping it at 21yrs and above, while some 18yrs above, states in the USA are places which I know have such a limit, but here in my country it's 18yrs and above to the best of my knowledge, and if the report is not positioned in a particular country it's hard to determine if it's just bettors escaping sport book or a particular age gap that's generally interested in prediction market.

[vincentixz]

I can understand the legal distinction but from a user perspective it does feel pretty similar

[Questat]

If little amount of people are talking about it - then it is not a problem.

$5 billion is not a small amount. There must already be a lot of people aged 18 to 20 putting money into prediction markets, so I think that should already be alarming.

Some countries have banned prediction markets, but with this kind of volume, clearly a huge amount is still coming from places where they are allowed or regulated.

Right now, the bigger concern around prediction markets seems to be insider information and manipulation, but I think younger users gambling through these platforms should also get more attention from regulators.

I meant little amount of person are talking about addiction from prediction market. In situation with gambling, internet is full of stories and examples of addiction. Addiction is also shown in TV. Have you heard much about people who are addicted to making prediction on politics, climate or economics? I think all we heard are addiction to sport betting and playing popular casino games (slots, poker, blackjack). When people start to talk loud how someone from their family has lost everything by betting traffic at the Strait of Hormuz for example, then attention to youngster betting on prediction market will get attention. Until then, there is no problem...

I get your point, but just because only a few people are talking about it doesn’t mean there is no addiction problem. The reported figures are already in the billions, so the amount of participation is clearly significant.

Regulators should not have to wait until there are already many addiction cases being reported. Their job should also be about prevention, not just reacting after the damage is already there.

[Samlucky O]

The problem is that there is no clear regulations and there are loopholes sometimes. If a countries do not allow people to gamble until the age of 21 years, the regulators in the country should also make sure that prediction markets that are legal in the country should let people that can make predictions on their site to be at least 21 years old. But sometimes there could be loopholes or the regulators may not know fast. And if they know sometimes, nobody know the politics that is going on underneath.

That's actually true, if sportbook don't allow underage to gamble while prediction market allows underage to gamble them the system is percial. If prediction market allows underage who are less than 21 years of age to gamble, then there should be no reason why the sportbook will not to allow underage to gamble. The system should be fair enough for both sportbook and prediction market to set age limit before one will place bet. If they should agree on 21years let it be so, and if it is 18 then let it be general instead of being 2 fashioned. It is just like enforcing a law that is limited to some people whole some are not affected then such law is a currupt law. A law should be free and fair and everyone is answerable to it when failed. So I see that there is something going on that no one is actually talking about.

[Strongkored]

If both involve risking money on the outcome of a sports event, why do they have different age requirements? Is there really enough difference between the two to justify that?

Both involve money and the risk of loss, yet not everyone agrees that market prediction is the same as gambling at least the regulator interprets it that way.
The difference in meaning between market prediction and sports betting may explain the differing age requirements for participating in them.
We also frequently see regulations overlapping with one another, creating confusion.

[Alex077]

I read a report saying that around $5 billion in Kalshi sports trading volume came from users aged 18 to 20. We all know that many sportsbooks only allow gamblers who are 21 years old and above. This makes me question the regulation. An 18-year-old may not be allowed to place a sports bet on a sportsbook, but can still put money on a sports prediction market...

I also see a pretty obvious contradiction here. Legally, there is a difference: traditional sportsbooks are regulated under state gambling laws, while Kalshi operates as a federally regulated event-contract market under the supervision of the CFTC. That’s why people can trade on Kalshi from the age of 18, while most US sportsbooks require users to be 21.

And the fact that several billion dollars in trading volume comes from users between 18 and 20 shows that this is no longer just a theoretical issue. In fact, age restrictions have already become one of the arguments states are using in their legal disputes with Kalshi. New Jersey has already taken the issue to the US Supreme Court, arguing, among other things, that prediction markets effectively allow people to get around state rules on sports betting.

So I think regulators will have to deal with this issue sooner or later. You can call one product a “bet” and the other an “event contract,” but if both allow an 18-year-old to put money on who will win a football or basketball game, it’s pretty hard to explain why they’re considered too young in one case but old enough in the other.

[Dr.Bitcoin_Strange]

Well, I think the obvious reason why his is allowed is because some jurisdiction have not considered prediction market to be a form of gambling but rather they take it as trading. How ever, depending on the gambling rules in some. Jurisdiction, the age allowed to participate in gambling ranges from 18 and above.

For example, if you are using Stake.com you must be 18 or higher depending on the legal gambling age in your country but for
Stake.us, you must be 21 and above. Now, the difference with prediction market is that they consider it as a form of trading and not gambling.

[Donk1]

Well Kalshi is under federal regulations which makes it more likely to be a financial market, or in fact it is a financial market more like an exchange,and just like every other exchanges 18 year olds are allowed to trade. But that's not the case with sportsbooks because they are controlled by individual state gaming boards, and to themm 21 years and above is the required age to trade/ gamble...

i think the difference falls short considering that age 18 is already supposed to be seen as a full adult, perhaps that's just the way of saying 21 below are still just teenager so I bet they have further reasons as to why such a rule is implemented..that's all.