Millennials and high value bettors may show signs of a decline in their online sports wagers, but they also represent the bright spot in the betting universe, according to a TransUnion Study.
Overall, the study showed that fewer Americans wagered online in 2022 in part because of concerns over a recession. The Consumer Pulse Online Sports Betting Study showed that 49 percent of U.S. bettors reduced discretionary spending in Q4 2022. In addition, the number of consumers participating fell from 19 to 11 percent, according to PlayUSA.
The study, conducted from November 1 to 9 in partnership with Dynata, included 2,835 adults.
The biggest drop off came from Millennials. The research concluded Millennials and high-value bettors were key segments of the online gaming industry. They also tend to have higher income levels.
Millennials, who represent the largest portion of bettors, saw wagers fall from 38 percent in Q2 to 22 percent in Q4.
“While Millennials and high-value bettors have held back from gaming, operators should focus their efforts to stay engaged with them,” Declan Raines, head of U.S. Gaming at TransUnion, said. “These groups are a key market segment and, given their optimism for personal finances over the next 12 months, are much more likely to become return players when the economy bounces back.”
High-value bettors are also optimistic about their financial future.
Despite low numbers, there may be a silver lining for the industry. For example, the study found that sports bettors were more likely to express optimism about their income over the next 12 months.
The findings show that high-value bettors are more resilient than sports bettors in general and non-sports bettors. That includes:
- • Levels of income
- • Optimism over future income
- • Increased discretionary spending
However, this group also shows greater signs of distress, with increased usage of retirement savings and intent to cut back on nonessential spending. High-value bettors also increased their use of available credit.
Millennials have higher incomes and more discretionary spending budgets than other generations. U.S. sports betting operators need ways to keep this group interested in the industry.
As Raines concluded: “Mobile sports bettors are not monolithic, especially in the high-value segment. As operators are focused on acquiring and retaining a sustainable pool of players, they’ll need access to rich data sources to help them identify sustainable players.”