Millennials Fueling Gaming Industry’s High-Value, High-Risk Consumer Segments

Posted on: August 6, 2024, 09:24h. 

Last updated on: August 6, 2024, 09:32h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

The latest edition of the TransUnion “U.S. Betting Report” sheds new light on the consumer demographics fueling the online casino gambling and sports betting industries.

TransUnion sports betting iGaming millennial
The TransUnion “U.S. Betting Report” provides valuable insights into the online gambling and sports betting industry in the United States. The consumer credit rating agency reports that millennials most participate in iGaming and internet sports wagering. (Image: TransUnion)

TransUnion, an American consumer credit reporting agency, reports that nearly six in 10 online bettors that operators consider “high-value” because they habitually wager large sums are millennials. TransUnion defined high-value bettors as those spending $500 or more per month, or $6,000 a year.

The consumer credit reporting firm surveyed 3,000 adults in April and May to gauge which consumers are propelling iGaming and online sports betting’s continued growth. Researchers found that millennials, or those currently aged 27 to 42, account for 57% of the high-value demographic.

Millennials largely grew up with the internet and had mobile internet-connected devices for most of their lives. That’s made them more comfortable with gambling online than their parents.?

Betting Within Means?

Millennials driving the high-value online gambler segment isn’t necessarily a bad thing, the TransUnion report summarized, because many in the demographic have seen their wages increase in recent years and have more expendable income than ever before. The betting report said high-value bettors are disproportionately high-income earners with the best credit scores.

As we’ve found in prior reports, the majority of betting consumers can afford this form of entertainment,” said Declan Raines, head of TransUnion’s gaming business. “In fact, 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 afford to lose.”

TransUnion says 55% of all online bettors have good or excellent credit scores (Good: 721-780, Excellent: 781-850). That tops nonbettors at 50%, but trails land-based-only gamblers at 58%.

Of course, not everyone gambles responsibly. The TransUnion report says that while higher-spending gamblers are more financially resilient, they’re likelier to manage their finances poorly.

The study found that 49% of all high-value online bettors reported being past due on a bill or loan within the past 12 months. TransUnion says it’s vital that online gaming operators have the innovative resources to differentiate between a consumer who is amid a period of financial transition and one who might be gambling irresponsibly.

“It’s important for operators to understand whether the higher propensity to be behind on bills is temporary or a result of greater financial distress. Differentiating between the two is crucial for deploying the appropriate strategy for mitigating potentially problematic play,” the report read.

Increased Scrutiny?

TransUnion believes heightened regulatory scrutiny is forthcoming regarding responsible gaming as iGaming and online sports gambling continue to expand in the US.

As the market matures, operators can anticipate increased scrutiny from media, with questions focused on the perceived social drawbacks of widespread betting,” TransUnion researchers wrote. “Operators may likely face increased requirements to assess responsible gaming risk for their customers. To do this, additional data sources that provide insights into consumer financial health will need to be considered to ensure proactive identification.”

iGaming, or online slots and table games, remains limited to seven states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. Online sports betting is regulated in 30 states plus Washington, DC.