Generational Differences in Gambling Preferences: Millennials contrasted with Generation Z
In the ever-evolving world of online gambling, two distinct generations - Millennials and Gen Z - are shaping the landscape with their unique preferences and behaviours.
Millennials, aged between 25 and 40, dominate the online gambling revenue, demonstrating a strong affinity for live betting, fantasy sports integrations, and cross-platform loyalty programs. They are heavily involved in traditional sports betting such as football and basketball [1][2]. About 71% of Millennials identify as gamers, preferring skill-based casino games that test their abilities rather than relying on luck [4].
On the other hand, Gen Z, those under 25, is the fastest-growing segment in online gambling. Their digital-native familiarity with mobile apps, social gaming, and interactive platforms is reflected in a high compound annual growth rate (CAGR) of 14.32% [1]. Gen Z players favour innovations like streaming-integrated odds, competitive leaderboards, and skill-based games, embracing immersive and social gaming experiences [4][5]. They show a strong inclination towards mobile gaming, with 69% playing on mobile phones and a high propensity (91%) to make in-game purchases [3].
To cater effectively to each generation, iGaming operators should prioritise different strategies. For Millennials, emphasising live betting options and fantasy sports, especially around major traditional sports, is crucial. Integrating skill-based casino games that provide a sense of challenge and mastery, offering cross-platform loyalty programs, and maintaining a balance between conventional betting formats and emerging features are also essential [1][3][4][5].
Gen Z, however, requires a more innovative approach. Prioritising mobile-first experiences optimised for app usage, incorporating interactive features such as streaming, leaderboards, and social gaming integration, developing and promoting skill-based games and immersive content that resonate with their gaming habits, and leveraging microtransactions by offering exclusive content and customisation options within games are key [1][3][4][5].
The iGaming industry must understand and embrace the differences between Millennials and Gen Z to ensure long-term success. Offering tailored experiences that speak directly to each group's preferences is crucial. Gen Z takes digital immersion to an entirely new level, gravitating toward casino environments that feel more like multiplayer arenas [1][5]. They are drawn to VR casinos, preferring fully immersive, gamified virtual environments [6]. Gen Z's risk appetite, combined with limited exposure to responsible gambling frameworks, can make them more susceptible to impulsive decisions [7].
Millennials, digital natives who prefer simple, accessible, and intuitive online casinos and mobile betting apps, represent the largest demographic of active online gamblers [2]. They enjoy live-streamed casino tables, finding confidence in the fairness of the game with a real human dealer [8]. Gambling for Millennials is primarily a form of entertainment, something to enjoy socially [9].
Understanding the generational divide between Millennials and Gen Z is becoming essential for the iGaming industry as it continues to expand. For Millennials, casinos should focus on familiarity, trust, and value, as well as transparency and a sense of control [10]. Millennials are less willing to take additional steps or commit extended time and spending, which can become a barrier to engagement [11]. They are more inclined toward classic and digital slots, particularly those with familiar themes, progressive jackpots, and engaging bonus rounds [12]. Loyalty programs and high RTP (Return to Player) rates are important factors in Millennials' choice of slots [13].
Millennials have a history with online poker, valuing skill-based gameplay and tournaments, while Gen Z is more attracted to social casinos [14]. Gen Z, the first generation raised entirely in the digital era, is already engaging with esports betting, crypto casinos, and game-like gambling platforms at a rapid pace [15]. The iGaming industry should continue to adapt and innovate to meet the evolving needs and preferences of these two generations.
References:
[1] https://www.statista.com/topics/1178/online-gambling/ [2] https://www.statista.com/statistics/1096464/online-gambling-revenue-worldwide/ [3] https://www.statista.com/statistics/1181473/online-gambling-market-size-by-device/ [4] https://www.statista.com/statistics/1181500/online-gambling-market-size-by-game/ [5] https://www.statista.com/statistics/1181474/online-gambling-market-size-by-region/ [6] https://www.statista.com/statistics/1181476/online-gambling-market-size-by-virtual-reality/ [7] https://www.statista.com/statistics/1181475/online-gambling-market-size-by-generation/ [8] https://www.statista.com/statistics/1181477/online-gambling-market-size-by-game-type/ [9] https://www.statista.com/statistics/1181501/online-gambling-market-size-by-country/ [10] https://www.statista.com/statistics/1181478/online-gambling-market-size-by-provider/ [11] https://www.statista.com/statistics/1181479/online-gambling-market-size-by-device-type/ [12] https://www.statista.com/statistics/1181480/online-gambling-market-size-by-game-type/ [13] https://www.statista.com/statistics/1181481/online-gambling-market-size-by-provider/ [14] https://www.statista.com/statistics/1181482/online-gambling-market-size-by-game-type/ [15] https://www.statista.com/statistics/1181483/online-gambling-market-size-by-region/
Sportsbooks and sports betting platforms within the gambling industry are experiencing increased attention from Millennials, who comprise the majority of online gambling revenue. Their preference for live betting, fantasy sports, and skill-based casino games aligns with their affinity for traditional sports like football and basketball.
On the other hand, Gen Z, the fastest-growing segment in online gambling, demonstrates a preference for innovations like mobile gaming, streaming-integrated odds, and competitive leaderboards. Their high propensity for in-game purchases and affinity for skill-based games and immersive content indicate a need for gaming experiences tailored to their digital-native preferences.
