Online bettors are three times more likely to be contacted by a collection agency, according to research findings by the TransUnion U.S. Betting Report. The company surveyed the betting engagement practices of 3,000 adults in late April to early May 2024.
Millennials account for 57% of high-value online bettors at online casinos. On average, those gamblers spend $500 or more per month. High-value bettors are typically high-income earners with the best credit scores.
High-value online bettors are more likely to be delinquent for paying bills, loans, and child support.
However, high-value gamblers are also more likely to be delinquent for paying bills, loans, and child support. Millennials are those considered to be between the ages of 28 and 43.
“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 a release highlighting the study’s findings.
“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 well afford to lose.”
According to the TransUnion study, millennials who expect to be unable to pay any current bill or loan in full account for 44% of online bettors, 43% retail bettors, and 24% of non-bettors.
Millennials who were contacted by a collection agency for a past due bill or for loan payments in the past 12 months account for 54% of online bettors, 45% of retail bettors, and 17% of non-bettors.
Gamblers who bet online and at retail casinos may have a financial advantage compared to non-gamblers
As of September 2024, a total of 47 states allow some form of casino gaming. Of that number, 27 of them allow commercial betting. For sports betting, 38 states and Washington D.C. have legalized the practice.
Gamblers who bet online and at brick-and-mortar casinos appear to have a financial advantage compared to non-bettors. About 20% of online bettors and 18% of land-based bettors said their incomes increased within the past three months.
Nonetheless, only 4% of non-bettors reported the same. Roughly 55% of online bettors and 58% of land-based bettors have good or excellent credit scores. For comparison, only 50% of non-bettors said the same.
The study also showed that gamblers are more likely to mismanage their money.
The National Council on Problem Gambling estimates the annual cost of problem gambling is roughly $14 billion. Approximately 9 million American adults suffer from gambling addiction.