• About Us / Contact
  • Responsible Gambling
This site contains commercial content
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
    • Guide To ‘Risk-Free’ Bets
  • News
No Result
View All Result
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
    • Guide To ‘Risk-Free’ Bets
  • News
No Result
View All Result
SportsHandle
No Result
View All Result

Is Sports Betting Less Recession-Proof Than We Thought?

A TransUnion study suggests sports bettors are more susceptible to downturns than previously thought

Mark Saxon by Mark Saxon
September 1, 2022
in Industry
Shutterstock

Shutterstock

Share on FacebookShare on Twitter

Many financial experts are increasingly fretting about a recession on the horizon, and a new study suggests the U.S. gambling industry may not be as insulated from such a downturn as many people thought.

A TransUnion study released this week reported that U.S. sports bettors are generally high income, with 54% earning at least $100,000 annually. They are optimistic about their financial futures, according to the study, but also feeling the pinch of inflation and showing signs of cutting discretionary spending such as sports wagering.

If this robust job market ever starts to cool off, that trend could cut deeper still.

“People are probably going to be familiar with the old adage that the industry does well in recession, right? I’ve heard that since I was a kid,” said Declan Raines, head of U.S. gaming at TransUnion. “Now, we’re going to actually see that put to the test. I would say this report would actually counter that conventional wisdom.”

With supply-chain disruptions coming out of the pandemic, a war in Ukraine driving energy prices up, elevated inflation overall, and higher interest rates, TD Securities was the latest major institution to sound the alarm about a potential recession. The company released a finding in late July that there is more than a 50% chance of recession in the U.S. within the next 18 months.

A shift toward retention?

An economic downturn could come at a difficult time for mobile sportsbook operators and others in the U.S. gambling industry, with two of the top three biggest U.S. states — California and Florida — working through obstacles toward legalizing sports betting in the coming months. Typically, operators take losses in the earliest months of launching in new states as they scramble to acquire new customers with lavish marketing and promotional campaigns.

Raines said TransUnion’s study, which polled nearly 2,500 adults who engage in sports betting, indicates that the consumer’s behavior adheres more closely to overall economic conditions than previously thought.

“The conversation or debate we’ve been talking about the last four years, whether it’s sustainable or not, I think you’re going to see a shift towards retention as it becomes harder to justify the cost of acquisition in the current climate,” Raines said. “Overall, GGR [gross gaming revenue] is expected to drop, so I think there will be a greater focus on the existing player base.”

A weakening economy could prompt operators to increase their efforts around the efficiency of their operations and the quality of the products they offer, particularly in states such as New Jersey that moved quickly to legalize sports betting, Raines said. He also thinks operators will seek to get a better picture of their customers’ overall economic health, rather than just their betting behavior, when offering new products or tailoring approaches to problem gambling solutions.

Higher incomes, but bigger worries

The study found that mobile sports bettors are seeing increased incomes and are generally more optimistic than most consumers. That could be due to a high employment level among U.S. bettors – with 89% reporting they’re currently working, compared to 81% in the total population. In fact, 22% of mobile sports bettors said they had changed jobs for higher pay in the last three months.

Even with all that, 79% of mobile sports bettors said they were concerned about their ability to pay current bills and loans in full compared to 52% of the overall population.

“No one is immune to the concerns around the larger economic climate,” Raines said. “It would be easy to see those in opposition to each other, that people earning higher incomes wouldn’t be as concerned about external conditions. But this speaks to the fact that those concerns are causing people to alter their spending behavior. That has a lot of different implications for sports betting and the wider gaming industry.”

ShareTweetShare
Mark Saxon

Mark Saxon

Mark has been covering sports for more than 30 years at stops that include The Athletic, ESPN.com, the Orange County Register, and Oakland Tribune. A Major League Baseball beat reporter from 1998 to 2021, Mark also has covered college football and basketball extensively and dabbled in nearly every other major sports league. He has been a lifelong sports gambler. He pays special attention to developments in the sports betting world in New York. Contact Mark on Twitter (@markasaxon) or via email at msaxon@bettercollective.com.

Related Posts

Shutterstock
Legislation

Card Room-Backed Sports Wagering Bill Filed In Washington State

January 27, 2023
Bob Self/Florida Times-Union/USA TODAY
Sports

Florida’s NFL Teams Make Rare Joint Playoff Appearance, All As Underdogs

January 11, 2023
Load More

Top Stories

patrick mahomes

Mahomes’ Ankle Speculation Twists Line Movement In Chiefs-Bengals Rematch

January 27, 2023
fanatics-grand-opening

Fanatics Sportsbook At FedEx Field Offers Unique Retail Option In Maryland

January 23, 2023
Shutterstock

Missouri Legislators Lament Exodus Of Bettors To Neighboring States

January 27, 2023
rob gronkowski adam vinatieri

Rob Gronkowski Goes Training Montage Route In Latest FanDuel Spot

January 17, 2023

State Sports Betting Guides

Ohio (U.S. state) flag waving against clear blue sky, close up, isolated with clipping path mask alpha channel transparency, perfect for film, news, composition

Ohio Sports Betting – Where To Play, Bonus Offers And Promo Codes

by Brian Pempus
January 31, 2023

Downtown Detroit at twilight (Shutterstock)

Michigan Sports Betting – Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
February 1, 2023

VA captial

Virginia Sports Betting – Where To Play, Online Sportsbooks And Bonus Offers

by Brett Smiley
January 17, 2023

nj flag

New Jersey Sports Betting — Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
October 20, 2022

pa online sportsbooks

Pennsylvania Sports Betting – Where To Play, Online Sportsbooks And Bonuses

by Brett Smiley
October 6, 2022

Canada Sports Betting Guides

Canada Sports Betting – Best Sportsbook Apps & Bonus Offers

British Columbia Sports Betting – Legal Update, Available Sportsbooks, and FAQ

Ontario Sports Betting – Legal Status And Where To Play

gambling therapy
ncpg
igaming ontario
If you or someone you know has a gambling problem, crisis counseling and referral services can be accessed by calling 1-800-GAMBLER (1-800-426-2537) (IL). Gambling problem? Call 1-800-GAMBLER (MI/NJ/OH/PA/WV), 1-800-9-WITH-IT (IN), 1-800-522-4700 (CO), 1-800-BETS OFF (IA), 1-888-532-3500 (VA) or call/text TN REDLINE 1-800-889-9789 (TN).
19+. Please play responsibly. Terms and conditions apply. 
Individuals must be 19 years of age or older to participate in igaming in Ontario. Gambling can be addictive, please play responsibly. If you, or someone you know, has a gambling problem in Ontario and wants help, please visit ConnexOntario or call their helpline at 1-866-531-2600. Operators on this website operate pursuant to an Operating Agreement with iGaming Ontario.

Search Sports Handle

No Result
View All Result
  • About Us / Contact
  • Responsible Gambling

No Result
View All Result
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
    • Guide To ‘Risk-Free’ Bets
  • News

loading

Please wait while you are redirected to the right page...

Please share your location to continue.

Check our help guide for more info.

share your location