Millennials Spend the Most on Online Gambling
Surprising data released by payment processing specialists PXP has shown that the Millennial generation, those born between 1981 and 1995, spend more money on online casino and bingo sites than any other generation.
The study was designed to look into current and future spending habits across multiple generations and how that may inform iGaming industry trends moving forward. This was, in part, provoked by the Gambling Commission announcing that there would be a ban on credit cards, declared in January 2020 and put into force back in April.
The results show that Generation X, those born between 1965 and 1980, are by far the most likely to use credit cards online at 59%. This contrasts with only 25% who would choose to use a debit card. They also had the most negative view of the credit card ban. Though subsequent generations have a net negative view of the regulation change as well, Millennials and Generation Z are much less likely to use a credit card online and much more likely to use debit cards. Therefore, the indication is that the credit card ban should not adversely affect the online gaming industry in the medium to long term.
PXP’s research found that Generation Z, the current generation of those born between 1996 and 2012, and who represent the immediate future, were not yet significant spenders in online casino and bingo. Also, it found that 67% of Gen Z much prefer to shop in brick and mortar establishments rather than spending money online, compounding a slightly worrying trend. This shows that the industry has its work cut out in trying to find new and innovative ways to attract the next generation of online gamers.
Current thinking is that Generation Z, a video gaming generation, will respond positively to an increased gamification in the sector. However, this will bump up against increased regulation of industry imagery so as not to appeal to under 18s.
What is clear is that the average online gamer is trending younger, so the industry is going to have to be nimble in the future rather than relying on what has worked for previous gambling generations.