New research suggests the use of mobile sports betting sites is trending up again in the United States, but economic headwinds are still putting a bit of a damper on the online gambling scene.
A report released Wednesday by financial-information company TransUnion found participation in legal sports betting via mobile apps and sites in the United States was 17% in the second quarter of 2023.
That was up from 11% in the fourth quarter of 2022 but still lower than the 19% usage reported in the second quarter of last year.
“The majority of the active betting population has experienced rising incomes that outpace inflation, including the key millennial demographic, so they have the means to spend on this type of entertainment,” said Declan Raines, head of TransUnion’s gaming business, in a press release. “Conversely, most would-be bettors, whose incomes have not kept up with rising costs, are holding back from playing.”
Crunch time
The findings stem from an online survey of 3,000 adults in the U.S. conducted by TransUnion in late April and early May in partnership with third-party research provider Dynata. The new research was also released as consumers are still being pinched by higher prices and interest rates, which could leave them with less money to gamble, sapping the business of sportsbook operators searching for profits.
The report contained other insights as well, such as the connection between higher household income and betting activity. TransUnion found 35% of high-income consumers were bettors, compared to 27% of medium-income and 20% of low-income consumers. Furthermore, 66% of consumers who saw their income rise a lot participated in at least some gambling.
But one factor that could weigh on future wagering is the resumption of federal student loan repayments this fall in the U.S. This could "further crowd out" discretionary spending for some consumers and curb growth in the gaming industry, TransUnion noted.
Bettors could also be under more financial pressure in general, as TransUnion found 46% of punters responded “yes” when asked if they expected they would be unable to pay any of their current bills or loans in full, compared to 26% of non-bettors.
“Even after adjusting for income, we saw bettors again are much more likely to have been 90 days or more past due on one of their financial obligations,” the report stated. “Across all income cohorts, bettors were more than twice as likely to report being severely past due on one of their bills.”
