Millennials Fueling iGaming’s High-Value, High-Risk Segments

Posted on: August 6, 2024, 09:24h. 

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

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, 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.

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.

“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.