Mobile sports bettors show size
CHICAGO, Aug. 31, 2022 (GLOBE NEWSWIRE) — Amid rising inflation and its impact on consumers’ personal savings rates, TransUnion (:TRU) conducted new research examining the financial status and behavior of consumers engaged in mobile sports betting take part . The study found that more than half (54%) of mobile sports bettors have high incomes — earning $100,000 or more — but many are concerned about inflation and its impact on their ability to continue making loan payments in the future.
While the vast majority of mobile sportsbooks appeared to be in good financial shape based on their income and savings, a higher percentage reported having trouble paying bills and using short-term credit services such as payday loans compared to the general population. The study was conducted via an online survey of 2,739 adults in May 2022. A full report of the results is in the new “Consumer Pulse study on online sports betting.”
“On the face of it, most consumers who participate in mobile sports betting can probably afford it,” said Declan Raines, head of US gaming at TransUnion. “At the same time, our results show the importance, especially in times of economic uncertainty, that operators use comprehensive data to identify both resilient and distressed consumers. This can help operators protect players and provide a safer experience for consumers participating in regulated betting.”
Mobile sports bettors are well funded, mostly optimistic
A key trend gleaned from the report: mobile sports bettors are generating higher revenues and are generally more optimistic than most consumers.
Mobile sports bettors more optimistic about their finances
|total population||Mobile sports weather|
|Income has 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 sportsbooks are also more likely to be employed, with 89% currently employed versus 81% of the general population. Additionally, 22% of mobile sportsbooks said they changed jobs for a higher fee in the last three months, compared to 7% of the general population.
Despite strong financial performance and general optimism, mobile sportsbooks have voiced concerns about inflation and more 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 used their available credit and used their retirement savings at higher rates than the general population.
The research also identified a positive correlation between consumer liquidity and gaming industry performance at both the macro and state levels. Given this established relationship, the current financial hedging behavior of mobile sportsbooks could likely indicate a slowdown in the sportsbook industry in the near future.
“Consumer liquidity was a critical component of this research,” said Raines. “Tracking and how it relates to industry performance can help operators understand how broader economic factors can affect share of wallet, lifetime player value and responsible gaming risk.”
More trouble paying bills
Another indicator of declining consumer liquidity is that 79% of mobile sportsbooks were concerned about being able to pay their current bills and loans in full, compared to 52% of the general population. Additionally, mobile sportsbooks use payday lending services at higher rates than the general population.
The report highlights the challenges operators face when it comes to identifying resilient or distressed consumers. Operators who rely solely on their first-party data narrow their view of a player without the full picture. Those using more data sources are able to better monitor player stability and assess risky behavior, leading to appropriate interventions such as: B. Cool-down periods to ensure sustainable play. Operators have a significant advantage in improving responsible gaming practices when using third-party data, as is common in other global markets such as the UK
“The obvious benefit of having a robust responsible gaming strategy is to save players from financial woes, improve brand loyalty and ensure sustainable revenue,” said Raines. “Furthermore, it also demonstrates proactive efforts that are improving public sentiment towards the industry overall, which is needed if the market is to see increased support for government access to sports betting and online casino products.”
Impact on creditworthiness
Mobile sportsbooks, especially those worried about paying bills in full or whose bills are already overdue, should check their creditworthiness. “Payment history and credit utilization rate, a measure of how much available credit someone is using compared to their total credit limit, are two of the most important credit scoring factors,” said Margaret Poe, director of consumer credit education at TransUnion. “Long payments and accumulated balances can have a serious, negative impact on a consumer’s creditworthiness.”
Many mobile sports betting sites and apps allow deposits with credit cards, a high-interest form of revolving credit. Therefore, it is imperative for sports bettors to understand how to gamble responsibly and practice healthy credit habits to ensure their financial well-being is not negatively impacted.
More information about the research can be found in the “Consumer Pulse study on online sports betting.”
This online survey of 2,739 adults was conducted May 12-19, 2022 by TransUnion in collaboration with external research provider Dynata. Adults 18 years and older residing in the United States were interviewed using an online research panel method on a combination of desktop, mobile, and tablet devices. The survey questions were asked in English. All states are represented in the study survey responses. To ensure the sample of the general population was representative of the demographics of residents of the United States, the survey included quotas to equalize responses to census statistics along the dimensions of age, sex, household income, race, and region. Generations are defined as follows: Gen Z, born 1995-2004; Millennials born 1980-1994; Gen X, born 1965-1979; and baby boomers born 1944–1964. These research results are unweighted and statistically significant at the 95% confidence level within ±1.87 percentage points based on the calculated margin of error.
About TransUnion (: TRU)
TransUnion is a global information and insights company that enables trust in the modern economy. We do this by providing an actionable image of each person so that they can be reliably represented in the marketplace. As a result, businesses and consumers can do business with confidence and achieve great things. We call this Information for Good®.
TransUnion is a leading presence in more than 30 countries on five continents, providing solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people.
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