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US Gambling Sector Must Adapt to Shifting Market Dynamics
A recent study revealed that Millenials are now the leading gambling age group, incentivizing operators to revise their customer onboarding and retention strategies
A recent report by US consumer credit reporting agency TransUnion highlighted the explosive growth of the USA’s gambling sector but cautioned that shifting industry dynamics require a revised approach. Operators must effectively separate high-value from high-risk bettors and keep the current pace of innovations to maintain sustained growth.
Changing Demographics Present New Challenges
According to TransUnion’s US Betting Report, millennials are the real drivers of gambling participation across all channels. They account for 57% of online bettors who spend $500 or more monthly. These high-value bettors usually earn a high income with robust credit scores. However, they are also highly likely to have bills, loans, and child support payments.
The survey studied 3,000 adults between late April and early May 2024. Declan Raines, head of TransUnion’s gaming business, noted that most bettors exhibited healthy gaming behaviors. He added that gambling spending correlated with a significant increase in income, indicating that most individuals were not at risk of suffering gambling harm.
The majority of betting consumers can afford this form of entertainment. Most consumers only wager what they can well afford to lose.
Declan Raines, TransUnion senior director of gaming
Consumers who gamble online or in land-based casinos tend to have a financial edge over non-bettors. For instance, 20% of online bettors and 18% of land-based bettors said their incomes had increased significantly in the past three months versus 4% of non-bettors. Meanwhile, 55% of online bettors and 58% of land-based bettors reported good or excellent credit scores versus 50% of non-bettors.
Gambling Harm Prevention Will Take Center Stage
According to TransUnion, the USA will likely follow in the footsteps of more mature jurisdictions like the United Kingdom and Australia, which have significantly tightened their gambling regulations, adopting a decidedly customer-centric approach. US operators may soon face more stringent requirements to assess the responsible gaming risk for their customers.
The study showed that the betting patterns of higher-value customers revealed poor financial management. These inherent risks could prompt US operators to follow global trends and implement measures for early detection of high-risk players. Raines noted that identifying customer behaviors could form the cornerstone of gambling harm prevention, increasing the need for quality data and consumer insights.
Operators are keenly aware of the need to balance commercial performance with player protections. The crucial next step will be to demonstrate proactive measures that protect consumers to regulators and consumer advocates.
Declan Raines, TransUnion senior director of gaming
The shifting demographic and financial behavior of consumers will continue to be a challenge for the gambling industry moving forward. Operators must prioritize responsible gaming practices, leverage data-driven insights, and work closely with regulators to create a more sustainable and ethical gambling environment. Addressing these challenges will be instrumental in ensuring long-term growth and stability while protecting vulnerable customers.
Deyan is an experienced writer, analyst, and seeker of forbidden lore. He has approximate knowledge about many things, which he is always willing to apply when researching and preparing his articles. With a degree in Copy-editing and Proofreading, Deyan is able to ensure that his work writing for Gambling News is always up to scratch.
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