The gambling landscape has undergone a dramatic transformation in the past decade, fueled by the rapid growth of internet casinos and the legalization of online sports betting in 2018. While many online gamblers wager responsibly, some conclusively do not.
Leveraging demographic data may help to find a balance between commercial success and player protection.
Key Highlights
- Six in ten high-stakes online bettors are millennials.
- Most online bettors have expendable income and good credit scores.
- Bettors in this demographic have displayed patterns of poor financial planning.
- Data can be an effective tool for operators looking to identify problem gamblers.
Breaking Down the Demographic
As the first generation to grow up with the internet, millennials have been more receptive to gambling online than their senior counterparts.
Unsurprisingly, the same group that’s been engulfed in Reddit’s WallStreetBets, Gamestop, and YOLO crypto plays is enthusiastic about online casinos and sports betting.
TransUnion, an American consumer credit reporting agency, surveyed 3,000 adults from April to May 2024. It concluded that millennials comprised 57% of those placing $500 or more in online wagers.
Having a significant bump in income was the primary correlating factor to whether consumers bet, regardless of income level. This suggests most consumers only wager what they can well afford to lose.
Declan Raines, Head of TransUnion’s Gaming Business
The report found a direct link between an increase in income and high-stakes betting, suggesting that the majority of this demographic is wagering within their means. It also discovered that 55% of all online bettors have a good to excellent credit score.
In comparison, slightly fewer non-gamblers fall into this category at 50%.
Declan Raines, head of TransUnion’s gaming business, said, “Having a significant bump in income was the primary correlating factor to whether consumers bet, regardless of income level. This suggests most consumers only wager what they can well afford to lose.”
However, several other concerning data points emerged.
Despite millennial bettors often touting impressive credit scores and expendable incomes, poor financial planning was more prevalent among this group. They displayed patterns of late payments on bills, child support, and loans.
The study’s results determined that 54% of high-stakes online bettors have overdue bills or loan payments that have gone to a collection agency in the past 12 months. Only 45% of land-based gamblers and 17% of non-gamblers could say the same. And more than 40% of those who wager $500+ a month said they couldn’t fully meet their financial obligations.
Whether these results are a monolith or part of a growing trend remains to be seen, but examining fiscal responsibility and betting habits may prove to be a powerful tool in mitigating problem gambling. Either way, operators can expect to be placed under a microscope as iGaming continues to expand.
New Player Protections May Be Ahead
State-regulated online casinos are fully legal and operating in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia, while online sports betting is now legal in 30 states.
In this rapidly shifting environment, operators are navigating player protections and heightened public scrutiny while striving to boost revenue.
As more information comes to light, they will likely face mounting pressure to develop effective methods for assessing problem gambling in their customers. That would require leveraging data to provide deeper insights into players’ financial health, allowing for early detection of high-risk individuals.
Ideally, this process would avoid disruption to those who wager responsibly.
Adaptiveness Is Key
While millennials, Gen Z, and eventually Gen A continue to shape the online gambling market, the challenge will be to harmonize commercial goals with safeguarding vulnerable players.
Operators who can effectively use data to develop risk detection will likely come out on top. Managing this can meet regulatory demands and also build a more sustainable and responsible betting environment for generations to come.
Source:
https://newsroom.transunion.com/nearly-six-out-of-10-consumers-betting-500-or-more-per-month-online-are-millennials/
