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

[KTChampions]

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?

Haha, on the one hand, it's an interesting "paradox," but on the other hand, firstly, as far as I know, the laws vary from state to state regarding the age of consent, the age when you can drink alcohol, when you can gamble, etc., which is also strange in itself.
Secondly, forecasting is not gambling by definition, since not everything here depends on chance, plus you are playing against another forecaster, not against the house, which requires the protection of the law (where there is a house, it is obviously interested in beating you, so regulation and verification of fairness are necessary, but in the forecast market, everyone is equal).

[BIT-BENDER]

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?

This is not to their defense but prediction market goes beyond sport event, it has a wider space or spectrum of things you can be able to predict on.
Although I think there should be age limit for both since their is actually no restrictions for what you can place a prediction on in the prediction market.

[Yorubek]

In both sportsbook and prediction market, there is uncertainty about the outcome, which increases the risk of losing money and in both cases, a person can lose control over himself by becoming aggressive and face big financial losses, as well as addiction. Kalshi has arranged this whole matter in such a way that people do not worry too much about this matter, Kalshi thinks themselves very clever. In both sportsbook and prediction market, it is very important for a user to be of legal age.

[iv4n]

This is how prediction markets avoid some restrictions, and it's what they do on all levels. They are not "gambling sites", they are "prediction" sites, so they are regulated differently. Therefore, they pay different taxes, can operate in states where "gambling" is illegal, and now we see they accept players under the age of 21... Why am I not surprised?

Some countries are against these prediction markets, but generally their popularity seems to be growing... As I see it, there will be a lot of legal fights in the future! We can bet on that...

[Smartprofit]

In my opinion, modern prediction platforms are the most innovative social internet technologies of our time! They're so amazing that even government officials are hesitant: "Should we ban them or not? Should we ban 18-year-olds from playing?" I think a ban will eventually be introduced, but it hasn't happened yet. 🙋

In 2017, schoolchildren were actively trading on cryptocurrency exchanges. I remember the Kraken cryptocurrency exchange being called the "schoolboy exchange." Currently, trading on all centralized exchanges requires KYC (identity verification). This doesn't stop young people from trading on decentralized platforms.

It's always like this... When a new social internet technology emerges (classic cryptocurrency, DeFi, NFTs, meme coins, prediction markets), young people are the first to embrace it. Then, grumpy older bureaucrats come along and impose bans.

Prediction markets are an innovative technology at the intersection of gambling and financial asset trading.  Prediction markets serve important social functions, just like any other market. They're not strictly regulated yet, but I think it's only a matter of time. And then a new, innovative social internet technology will emerge. And 18-year-olds will be playing and making money again...💁

[boyptc]

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?

It's probable because of how they are called for. A sports books is known to be a platform that has that pre requisite for the age of its gamblers due to its popularity and tenure they have for its operation which has already sets of rules made by the regulators.

While the prediction market is still quite young to have that kind of requirement and the rules are still being made because they are yet to determine that it's a gambling platform.

But soon, we might see the adjustment for the bracket of ages for who are allowed to get into the prediction markets. Compliance and verification for the users could happen too.

[Grace333]

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?

I don't know about you or the casino you're talking about, but majority of the casinos or betting platforms that i have seen have their minimum age requirement at 18. And by majority I mean both local and international, crypto casinos inclusive. And that means this statistics is correct you just didn't pay more attention to casino's age requirements. Even in my country we have very large amount of young people approaching betting hall and joining online betting groups so I truly believe that statistics is correct based on what is on the internet and what i have seen locally.

[Cleanshit]

This is not to their defense but prediction market goes beyond sport event, it has a wider space or spectrum of things you can be able to predict on.
Although I think there should be age limit for both since their is actually no restrictions for what you can place a prediction on in the prediction market.

Yea  prediction market markets covers just more than sports making the  difference even much more important, but base on an uncertain outcome that people are still putting morning at risk.
I do think that there should be a certain age restriction. Event type may be different but that risk of losing money is still there.

[Bitcoin Smith]

Some laws can be stupid that it don't makes sense, in my country gambling is legal but online gambling is completely banned and it also changes from one country to another and even the legal age changes from 18 to 21 in most platforms and in some nations you can legally enter a casino as teen. But it is what it is, maybe if this is brought into the spotlight of bigger forum then this might change but as of now we have to believe what government says because they only speak the truth.

Which law doesn't make sense? Every country makes laws based on their traditions, beliefs, and global standards. Since the law in different countries views adults at different ages, there will always be differences in gambling age in different countries. Online casinos must respect the laws of the jurisdiction they want to operate in, thereby ensuring that underage individuals are not allowed to gamble. This is where KYC becomes important to ensure that children are not exposed to gambling.

It doesn't make sense or atleast to me, that gambling is legal but online gambling is banned.

Age can be vary but we have the standard age of 18 and that is what most platforms also use to consider as an adult so countries can also make amendments in the existing laws that was created 50 years ago and update to what is the current scenario.

To be honest banning something online is an impossible task so these government are simply losing their tax revenue to the unregulated market.

[Muba20]

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?

A simple answer might be that the regulations are different, but this is never a solution that avoids liability. I think this issue has not been given much attention yet, which is why no law has been made on it. We often see such situations where after an incident, due to the huge criticism from everyone, the concerned authorities make new regulations. There are specific regulations for sports books, so no one can break the rules. On the other hand, the popularity of prediction markets is increasing, there are many who try to place bets like sports books, they think a lot about it, but the concerned authorities do not think about it at that level yet. If the issue of rationality is achieved, then of course there should be the same regulation for both. I think that in the future, regulations will definitely be made on this issue.

[Charles-Tim]

A simple answer might be that the regulations are different, but this is never a solution that avoids liability. I think this issue has not been given much attention yet, which is why no law has been made on it.

There are laws made about it. In many countries or almost all countries, people that are 18 or above can start trading according to the countries laws, but there are some countries that anyone that is not 21 or above are not allowed to gamble. Gambling and prediction market in some countries are regulated by different regulators will be the reason.

[Yeesha]

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

You're extremely right, they seem to be the same but pointed towards different direction. They might be a possibility that sportsbook is preventing under eighteen from placing bet because it is classified as gambling, and we all know how dangerous gambling could be especially to young people. While prediction market has it own eligibility either restricting young people, fitness or any other requirements. Because every app has  their own rules and regulations, that everyone must abide by. And in as much as you don't need licence before predicting a game doesn't mean it is easily accessible to everyone despite their age.

[adultcrypto]

There is no contradiction whatsoever in this because technically, most prediction markets operate under different regulations from online sportsbooks. If you noticed, prediction markets tends to operate like exchanges than gambling site which is why it is possible for prediction market to use a different regulation from gambling, hence the difference in the age limits for both. The ball is in the court of the regulators to fix the age requirements for both markets so I believe they are operating with their powers.

[CryptoHeadlineNews]

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?

I think the 21+years minimum that you are talking about is subject to a country's gambling policy, and not a general condition for Sportbook worldwide. Because there are still lots of Sportbook that have 18yrs+ as it's minimum age for gamblers, such as platforms like Stake, Rollbits, Duelbits, BC.Game, Sportbet.io and cloudbet. Moreover, some countries might wish to increase the gambling minimum age on the same Sportbook in other to moderate and prevent addiction among teenagers. And the United States of America seems to be one strong country that enforces this law the most, since 21years is the least minimum age allowed to place a bet. And when it comes to "Kalshi", I think the rate of abuse and misused by teene hasn't been obvious yet, which is why 18years is still regarded as the minimum age.

[Agbe]

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 have not seen a sportbook rejecting 18+ gamblers and all the once I have seen is from 18+. And if a sportbook is not allowing 18 years gambler then it would be from the country regular and not from the sportbook in particular. 18 years only boy is an adult which can participate in gambling and can have a decision on his own. And also if sportbooks didn't allow the 18 years gambler to bet in their casinos and prediction market allowed him. It is very simple. The prediction market sees the gambler has adult who can make decisions on his own. Therefore they allowed him to use the site.

[Proty]

The regulation is complicated because if someone that is 18years old is allowed in sports prediction market, I see no reason why they should be restricted from sport book. Before they are allowed in prediction market, it is believe that they are capable to take financial risk. Therefore I don't see the reason why people within that age limit won't be allowed to bet in sports book.
I feel that prediction market and sports betting may have some differences. However viewing it from the perspective of a gambler they are still the same thing, because they don't have control of the outcome of the two.
I believe the rules should be reliable  because if someone that falls within the age range of 18-20 can be able to use predictions Market but can't make use of sports book. It simply means that the regulation doesn't make any difference. Since they can still do the same thing in the other platform.

[Orpichukwu]

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

That could be it, but at the same time, trading and gambling almost possess the same risk, which is that there is an age limit on them, as one needs to be an adult before they will be legally allowed to participate in any of those activities, and currently prediction markets are offering more or like of almost all kinds of sporting activities, which there is no longer different from what sportbooks offer, which is why some states are going after them and accusing them of going contrary to what the service was originally licensed for.

[CryptoBuds]

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?

I don't see anything wrong with that. Sportsbooks are regulated by state law. So if any state set  age limit at 21, there's nothing you or I can do about it.

But Kalshi is different. Kalshi is regulated by CFTC. Every one of their prediction is strictly regulated and monitored. That's not the case with sportsbook.

More importantly, Kalshi is not any gambling establishment. We're wrong about that. Kalshi treat these sport prediction as financial product. Unlike traditional gambling, we don't bet against house, we only take position against another trader.

[Sandra_hakeem]

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.

@bakasabo should have said this instead--- since, precisely in his own words, a little amount of people are talking about it, then it is a big problem. People always find a loophole that is less talked about, that way they don't have to worry about pulling the attention and scrutiny of the regulators.

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.

I have never supported the idea of giving out licencing privileges to prediction markets ever since I noticed they make the greater part of their wealth from people who have no idea how they manage their "Insider knowledge"

[Nathrixxx]

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.

Say the fact once you are 18 years and above you will be allowed to gamble on most of the gambling casinos and you don't have to be 21 years Plus, secondly we should not treat gambling in the same context with what prediction market allows, that you are being able to make deposit and play prediction market but being restricted on gambling platform because of underage gambling shows the exact difference between gambling and prediction market, no wonder government are taking drastic measure to fight against Kalshi and other prediction markets platforms.