CHICAGO, Aug. 31, 2022 (GLOBE NEWSWIRE) — Amid rising inflation and its impact on consumers’ personal savings rates, TransUnion (:TRU) has conducted new research examining the financial situation and behaviors of consumers who engage in mobile sports betting. Research found that more than half (54%) of mobile sports bettors earn high incomes ($100,000 or more), but many are concerned about inflation and its impact on their ability to continue making payouts. credit in the future.
While the vast majority of mobile sports bettors appeared to be in good financial shape based on their income and savings, a higher percentage indicated that they were struggling to pay their bills and resorted to short-term credit services, such as payday loans, relative to the total population. The research was conducted via an online survey of 2,739 adults in May 2022. A full report of the results is available in the new “Consumer Pulse Online Sports Betting Study.”
“On the face of it, most consumers who engage in mobile sports betting can probably afford to do so,” said Declan Raines, head of US gaming at TransUnion. “At the same time, our results demonstrate how important it is, especially in times of economic uncertainty, for carriers to use comprehensive data to identify both resilient and struggling consumers. This can help operators protect players and provide a safer experience for consumers engaged in regulated betting. »
Mobile sports bettors are well funded, mostly optimistic
A key trend stems from the report: mobile sports bettors are seeing their earnings rise and are generally more optimistic than most consumers.
Mobile sports bettors more optimistic about their finances
|Total population||Mobile sports bettors|
|Income increased in the last three months||32%||67%|
|Expect income to increase over the next three months||45%||71%|
|Optimistic about household finances over the next 12 months||58%||83%|
Mobile sports bettors are also more likely to be employed, with 89% currently employed compared to 81% of the total population. Additionally, 22% of mobile sports bettors reported changing jobs for higher pay in the past three months, compared to 7% of the general population.
Despite strong financial performance and general optimism, mobile sports bettors have expressed concern over inflation and others are taking steps to protect themselves financially to mitigate costs. TransUnion’s analysis found that mobile sports bettors save more money in emergency funds and pay off debt faster than the general population. In addition, they also increased their use of available credit and used retirement savings at higher rates than the total population.
The research also identified a positive correlation between consumer liquidity and gaming industry performance at both macro and state levels. Given this established relationship, the current hedging behavior of mobile sports bettors could likely indicate a downturn in the near future for the sports betting industry.
“Consumer liquidity was a critical part of this research,” Raines said. “Tracking and its relationship to industry performance can help operators understand how broader economic factors can impact share of wallet, player lifetime value and responsible gambling risk.”
No more difficulty paying bills
Another indicator of dwindling consumer liquidity is that 79% of mobile sports bettors worry about their ability to pay their bills and outstanding loans in full, compared to 52% of the total population. Additionally, mobile sports bettors use payday loan services at higher rates than the general population.
The report highlights the challenges operators face in identifying resilient or distressed consumers. Operators who rely solely on their first-party data limit their view of a player without having the full picture. Those using more data sources are able to better monitor player stability and assess risky behaviors leading to appropriate interventions, such as timeouts, to help ensure sustainable play. Operators have a significant advantage in improving responsible gaming practices when leveraging third-party data, as is often the case in other global markets such as the UK.
“The obvious benefit of a strong responsible gaming strategy is to help players avoid financial problems, improve brand loyalty and ensure sustainable revenue,” Raines said. “Beyond that, it also demonstrates proactive efforts that are improving public sentiment towards the industry as a whole, which is necessary if the market is to see increased support for state access to products. online sports and casino betting.”
Impact on credit health
Mobile sports bettors, especially those worried about paying all of their bills or who already have overdue bills, need to be aware of their credit health. “Payment history and credit utilization ratio, a measure of how much available credit a person is using against their total credit limit, are two of the primary factors in credit scoring,” said Margaret Poe, Head of Consumer Credit Education at TransUnion. “Missed payments and the accumulation of credit balances can have a serious negative impact on a consumer’s credit rating.”
Many mobile sports betting websites and apps allow credit card deposits, a form of revolving creditit is therefore imperative that sports bettors understand how to gamble responsibly and adopt sound credit habits to ensure that their financial well-being is not negatively affected.
For more information on research, read the “Consumer Pulse Online Sports Betting Study.”
This online survey of 2,739 adults was conducted May 12-19, 2022 by TransUnion in partnership with third-party research provider, Dynata. Adults 18 and older residing in the United States were surveyed using an online research panel method on a combination of desktop, mobile and tablet devices. The survey questions were administered in English. All states are represented in the study’s survey responses. To ensure that the general population sample was representative of U.S. resident demographics, the survey included quotas to balance responses to census statistics on the dimensions of age, gender, income, household, race and region. The generations are defined as follows: generation Z, born between 1995 and 2004; Millennials, born between 1980 and 1994; Generation X, born between 1965 and 1979; and baby boomers, born between 1944 and 1964. These research findings are unweighted and statistically significant at the 95% confidence level within ± 1.87 percentage points based on the calculated margin of error.
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