In a recent study conducted by TransUnion, it was found that millennials make up a big chunk of iGamers and online sports bettors, and not only this, but they were found to wager larger sums - from $500 or more each month. This comes as no surprise, especially since millennials grew up with the Internet and are more comfortable with online gambling compared to older generations.

In the latest edition of the US Betting Report from TransUnion, there are new insights into the consumer demographics driving the booming online sports betting and casino gambling industries in the United States. The report, published by the American consumer credit rating firm, underlines the pivotal role millennials play in these sectors, providing a comprehensive overview of the trends and behaviors characterizing this particular demographic.

According to TransUnion, millennials are the predominant participants in iGaming and internet sports wagering. The agency's findings indicate that nearly six in ten bettors online, whom many casino and sports wagering operators believe are "high-value" due to their substantial wagering habits, are millennials. High-value bettors are defined as those who spend $500 or more each month, equating to $6,000 or more annually.

In an extensive survey conducted last April and May, TransUnion gathered responses from 3,000 adults to identify the consumers driving the growth of online sports betting and iGaming. The results revealed that millennials, aged 27 to 42, make up 57% of the high-value bettor demographic. The generation's familiarity with the internet and mobile devices has made them more comfortable with online gambling compared to previous generations.

Wagering within limits

The report highlights that millennials' dominance in high-value online gambling is not necessarily a cause for concern. In fact, many millennials have experienced wage increases in recent years, resulting in higher disposable incomes. The report emphasizes that high-value bettors are often high earners with excellent credit scores.

Declan Raines, TransUnion's head of gaming business, stated, "As we've found in prior reports, the majority of betting consumers can afford this form of entertainment. 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's data supports this claim, showing that 55% of all online bettors have good or even excellent credit scores, with good meaning 721 - 780, and excellent scores at 781 - 850. This percentage is higher than that of non-bettors (50%) but slightly lower than land-based-only gamblers (58%).

Caution still a requirement

However, the report also cautions that not all gamblers manage their finances responsibly. Despite their financial resilience, gamers that are spending more are also more likely to struggle with financial management. The study found that 49% of high-value bettors had been past due on a loan or bill within the past year.

That's precisely why TransUnion stresses the importance of online gaming operators having the resources to distinguish between consumers experiencing temporary financial setbacks and those engaging in potentially problematic gambling behavior. "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," stated the report.

Enhanced scrutiny on Responsible Gaming

As the US market for iGaming continues to grow, TransUnion anticipates enhanced regulatory scrutiny in terms of responsible gaming practices. The report suggests that operators should prepare for increased media attention and regulatory requirements aimed at assessing and mitigating the risks associated with irresponsible gambling.

"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," the report advised.

At the moment, iGaming (online table games and slots) is limited to seven US states: Delaware, Connecticut, New Jersey, West Virginia, Michigan, Rhode Island, and Pennsylvania. In contrast, online sports betting is regulated in 30 US states as well as Washington, DC. As the market matures, the need for comprehensive and proactive responsible gaming measures will become increasingly critical to maintaining the industry's integrity and sustainability.