Fear of Recession Impacts the Number of Americans That Bets on Sports Online

By Matt Speakman,
Betting Expert at online-gambling.com

Matt Speakman Betting Expert at online-gambling.com

A die-hard fan of the Patriots, Matt Speakman is an expert on everything related to sports betting and DFS sites. Over the years, he has proven a valuable asset for our team at online-gambling.com. You can find Speakman's professional tips and tricks in any of his many articles on the website.

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Last updated: February 13, 2023

According to a survey that was released recently, fewer Americans bet on sports online as anxiety about a recession increased during 2022. The poll, which was conducted by TransUnion, discovered that only 11% of individuals that were questioned in the fourth quarter of 2022 made online bets. In the second quarter of 2022, 19% wagered online.

Participation fell greatly across three of the four generations. In the second quarter, 38% of Millennials bet on sports but this declined to 22% in the last quarter. Over the same period, Gen Z’s involvement decreased from 26% to 17%. Gen X participation decreased from 18% to 10%. The generation with the least involvement in sports betting, Baby Boomers, are the only ones that experienced an increase, moving from 1% to 3% in participation.

The decline is very alarming given that the fourth quarter includes the majority of the football season, which is the most popular sport for those who bet. Despite those dire statistics, there might be some hope for the future. The poll found that over the next 12 months, those who bet on sports were more likely to be optimistic about their finances.

TransUnion discovered that 75% of mobile bettors are optimistic that their conditions will improve. Around 82% of bettors who bet $500 or above monthly, considered the high-value bettors, express optimism about the year ahead. These figures will also increase as new states come online in 2023. Ohio online sports betting has already launched in early 2023 and will see more online bettors in the US.

Rise in Interest Rates and Consumer Debt

Over the past 18 months, inflation has hurt the gaming industry. TransUnion discovered that the industry reached its peak in the first half of 2021, just as the federal government began giving stimulus payments to most taxpayers. As soon as the inflation rate hit 6% in the middle of 2021, the numbers decreased to where they were in early 2020.

Consumer debt increased more than 9% in comparison to 2021 during the fourth quarter of 2022. Due to the increasing interest rates and debt levels, consumers were witnessing an average $100 monthly rise in their minimum payments.

A larger share of the income of consumers goes toward debt payment or into emergency savings; This is a disturbing sign for gaming operators, the report stated. Unsurprisingly, 49% of sports bettors mentioned that they reduced their discretionary or non-mandatory spending during the last quarter.

Correlation Discovered Between Mobile Bettors and Worries About Financial Distress

The report stated a connection between mobile bettors and worries about financial distress. When questioned on how they plan to pay their present loans and bills, 22% of bettors mentioned that they intend to use their existing credit cards. 23% said they intend to open a new card.

TransUnion discovered some concerns in the high-value demographic as well. One-third of high-value bettors took money out of their retirement savings in the last three months. In comparison, only 15% of the total mobile sports bettors did the same.

Around 2,835 adults (18+) throughout the US were polled by TransUnion and the research firm Dynata in early November for the survey. The results have a 1.8 percentage point margin of error at a 95% confidence level.