People Cutting Back on Sports Betting Sports Betting

More People Cutting Back on Sports Betting

By Blake Roberts Founder & Editor in Chief Updated: 13 February 2023

Blake Roberts Founder & Editor in Chief

Blake Roberts is the founder of Betting.US and is currently heading the creative team as Editor in Chief. Born and raised in Morgantown, West Virginia, Blake is a great sports fan, with football and basketball being his favorite. He’s our trusted voice for all betting-related matters.

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A recent report has shown how the economic crisis has impacted sports betting. The data, which was released by TransUnion, showed that in the final quarter of last year, huge numbers of people cut back on sports betting activities amid worries about a recession, tightening household budgets, and soaring inflation.

The surge in living costs over the course of last year has left many households in financial dire straits. Rocketing energy bills stemming in part from the Russian war against Ukraine coupled with soaring food prices have resulted in many household budgets being strained.

In addition, higher inflation resulted in a series of rate hikes from the Federal Reserve, putting further pressure on the finances of many households.

Finding Ways to Cut Back

As a result of this economic and financial turmoil, many people have been looking for ways to cut back on their outgoings. With many struggling to keep on top of the essentials such as housing costs and bills, discretionary spending levels have tumbled.

The data from TransUnion showed that in the fourth quarter of 2022, 49 percent of sports bettors in the United States reduced their discretionary spending. It was further revealed that the number of people betting on sports had dropped from 19 percent in the second quarter of last year to 11 percent in the fourth quarter.

As part of the study, more than 2,800 adults were polled, and the study was carried out in the early part of November. No information was provided with regard to the number of bettors using illegal sports betting sites compared to regulated ones.

The data further suggests that the biggest drop was among millennials, who make up a large section of sports betting consumers, along with high-value bettors.

TransUnion’s head of US Gaming, Declan Raines, said that although these two groups:

…have held back from gaming, operators should focus their efforts to stay engaged with them. These groups are a key market segment and, given their optimism for personal finances over the next 12 months, are much more likely to become return players when the economy bounces back.

While there are no signs yet of when the economy and people’s financial situations may improve, many sports bettors within these two groups are said to be optimistic. If things do improve, their sports betting activities could increase, according to officials.

Slower Period Coming Up

Of course, sportsbook operators now have the traditional slow period in the US sports schedule to cope with as well. After April, things tend to slow down until the football season begins in September. This, on top of the drop in betting activity, could have a big impact on sportsbook revenues.

However, if the economy does start to improve, betting operators might experience an uptick in the number of people betting on sports once the busy period begins again in the fall. In the meantime, there are still some major sports events scheduled for the early part of this year. These include the Super Bowl, March Madness, and the Masters.