Millennials: The High-Value, High-Risk Betting Population
Author:
Zach Lutz
Published:
Aug 14, 2024
,
11:46 a.m.
ET
Updated:
Sep 12, 2024
,
02:43 p.m.
ET
The gaming industry in the U.S. has witnessed tremendous growth in recent years, fueled in large part by millennials. This generation, born between 1981-1996 and known for its digital fluency and appetite for new experiences, has emerged as a dominant force in both online and land-based betting. However, their significant presence in the industry also brings heightened financial risks, as revealed by a recent TransUnion survey.
This article examines the key findings from the survey, explores the implications for millennials and highlights available resources for those struggling with gambling addiction.
Sports Betting demographics: Key takeaways from new study
Millennials Dominate High-Value Betting Segments
Millennials account for a substantial portion of the gaming industry's most lucrative segments. According to the latest U.S. Betting Report by TransUnion, 57% of high-value online bettors – those spending $500 or more per month – are millennials. These high-value bettors often have higher incomes and better credit scores compared to non-bettors. For example, 55% of online bettors and 58% of land-based bettors were shown to have good or excellent credit scores, while only 50% of non-bettors do.
Despite these positive financial indicators, the financial context of these high-value bettors is important to understand. The study makes a point noting income increases could be due to starting a new job after a period of unemployment and in a state of financial transition. “As such, the volatility among bettors can manifest in poorer financial management relative to the non-betting population,” TransUnion’s report read.
The survey uncovered troubling patterns of financial distress among high-value bettors. For instance, 44% of online bettors and 43% of land-based bettors expect to be unable to pay any current bill or loan in full, compared to just 24% of non-bettors. Additionally, 54% of online bettors and 45% of land-based bettors have been contacted by a collection agency for past-due payments in the past year, significantly higher than the 17% of non-bettors.
These findings suggest that while many millennials can afford to gamble, a significant portion may be overextending themselves, leading to financial difficulties.
Gender and Age Disparities
Sports betting demographics in the U.S. reveal notable gender and age disparities in sports betting. Men are more likely to engage in betting activities than women, and younger adults, particularly those in the Millennial age group, are more likely to participate in online betting.
Regional Variations in Betting Behavior
Betting behavior varies significantly by region, with some states showing higher levels of participation than others. This is influenced by factors such as the availability of legal betting options, local regulations and cultural attitudes toward gambling.
The Rise of Mobile and Online Betting
Mobile and online betting platforms have become increasingly popular, particularly among younger bettors. The convenience and accessibility of these platforms have contributed to a surge in participation, but they also present new challenges for responsible gaming. Operators need to ensure that their online platforms include robust measures to prevent problem gambling and protect vulnerable populations.
The Importance of Responsible Gaming
As the gaming market matures, there is increasing scrutiny on the social implications of widespread betting. Declan Raines, head of TransUnion’s gaming business, emphasized the need for operators to balance commercial success with player protection. "The crucial next step will be to demonstrate proactive measures that protect consumers to regulators and consumer advocates," Raines stated. This includes leveraging data to identify high-risk players without imposing unnecessary restrictions on those who gamble responsibly.
In the U.S., state regulators are beginning to explore ways to enhance consumer protections while maintaining the balance between state tax revenues and preventing bettors from turning to unregulated providers.
Gambling Addiction Treatment Options Available
For millennials and others who may find themselves struggling with gambling addiction, help is available. Birches Health offers several resources to support those ready to take the first step toward recovery.
Here’s how to take the first step toward recovery with Birches:
You can also simply call 833-483-3838 or email hello@bircheshealth.com to get in touch directly with the Birches team.
