Report finds Gen Z and millennials are driving gambling growth in the US
Gen Z and millennials are driving gambling growth in the US, according to a report by credit reporting agency TransUnion.
The study showed that gambling activity in the US rose in the second quarter of 2025, increasing to 30% from the 25% reported at the same period in 2024.
This increase was driven by Gen Z and millennials, with 34% and 42% of each group gambling regularly.
Data also shows that younger bettors were more likely to gamble speculatively, often alongside cryptocurrency trading and investing.
TransUnion found these younger gamblers were mainly in urban areas, were more likely to rent than own homes, and to use mobile gambling apps.
Millennials were shown to have increased their betting activity across all channels, including land-based and online venues, whereas Gen Z’s growth came exclusively from online sports betting.
The report’s authors warned that younger consumers’ financial positions are increasingly precarious. Millennial debt payments rose 20% yearly, while Gen Z’s debt climbed 27%, far outpacing inflation and wage growth.
According to the report, these pressures, combined with student loan repayments and lower consumer confidence, may temper future betting activity.
A recent study in Australia had similar findings. A survey of 3,881 adults found that gambling participation had risen from 57% in 2019 to 65% in 2024.
Abi Bray brings strong researching skills to the forefront of all of her writing, whether it’s the newest slots, industry trends or the ever changing legislation across the U.S, Asia and Australia, she maintains a keen eye for detail and a passion for reporting.
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The Backstory
Why the market is tilting younger
Legal wagering in the United States has been reshaped by a new cohort of bettors. A second-quarter analysis by TransUnion found gambling participation rose to 30% from 25% a year earlier, with Gen Z and millennials leading the uptick. The firm’s detailed readout said younger consumers are more likely to place speculative bets and bundle gambling with crypto trading. Those patterns, concentrated in cities and on mobile apps, are central to the current surge. TransUnion also cautioned that rising debt burdens for these users could cool activity as budgets tighten. The credit bureau’s findings, highlighted in our coverage of how Gen Z and millennials are driving gambling growth and in TransUnion’s original report, frame the demand story beneath this quarter’s headline numbers.
The generational tilt is not uniform. Millennials expanded play across online and land-based channels, while Gen Z gains came almost entirely from online sportsbooks, according to the TransUnion data. That split helps explain why operators have leaned into mobile experiences and bonus-driven acquisition in states with mature sports betting, and why casino content is rising where permissible. It also sets the stage for uneven growth if macro pressures pinch younger households harder than older, wealthier cohorts.
Spending outpaces the world
U.S. bettors are not just more numerous; they spend more. Optimove’s U.S. Gaming Pulse for May showed an average deposit of $604, up 10% year over year, versus a 2% global gain. Casino customers were the standout, spending an average of $8,259 in May, more than six times the worldwide mean. The number of U.S. casino bettors climbed 30% from a year earlier, while sports betting growth was steadier. At the same time, activity and retention lagged global benchmarks, suggesting operators are cycling through promotions to keep play levels elevated. These dynamics are detailed in our report on how U.S. bettors wager more than average, underscoring why product features and personalized offers remain core levers for growth.
The spending gap matters for two reasons. First, it lifts top-line results quickly in legal states, magnifying operating leverage for platforms that scale. Second, it raises sustainability questions if engagement ebbs while acquisition costs stay high. With younger customers carrying steeper debt loads, the risk of pullback later in the year looms, particularly if student loan obligations and softening confidence persist.
Operator momentum meets investor scrutiny
Operator prints have reflected the demand pulse. Caesars said its digital unit’s net revenue rose 24.3% in the second quarter to $343 million, while adjusted EBITDA doubled year over year to $80 million, as detailed in our story on how Caesars Digital delivered Q2 growth. The parent emphasized steady progress toward profitability targets first outlined in 2021. Caesars also pointed to new content, including a progressive jackpot system with White Hat Studios, as a driver of engagement and cross-sell. The company’s full earnings release offers additional color on state mix and margins in its investor update.
For investors, the setup now turns on durability. Elevated U.S. spend and a still-expanding addressable market support revenue, but lower retention and intense promo cycles keep pressure on customer acquisition costs. If the youth-driven surge moderates, the mix could favor operators with deeper casino offerings and tighter cost control. That puts a premium on proprietary tech, data-driven marketing and disciplined bonus strategies heading into the NFL season.
Integrity risks complicate the boom
Growth has arrived alongside renewed integrity concerns. A federal probe into a suspected NBA gambling ring has widened to include illegal wagers on men’s college basketball, tying into the investigation that ensnared Toronto’s Jontay Porter and examined prop bets linked to former Charlotte guard Terry Rozier. Bets were placed against multiple programs, and North Carolina A&T suspended three players last week for violating team rules. The NCAA said it works with monitoring services and regulators when suspicious activity surfaces. Our coverage of the expanding NBA gambling investigation shows how prop markets and player availability have become flash points.
Integrity issues tend to land in regulatory crosshairs and could spur tighter controls on certain bet types, more data sharing and stiffer penalties. Any clampdown would ripple through handle and product design, particularly in states that permit granular player props. It also raises compliance costs as operators bolster monitoring and education programs.
Global regulatory pressure sets the tone
While the U.S. market is legalizing state by state, regulators abroad are moving in the opposite direction on digital channels, citing youth risks. Bangladesh’s High Court ordered agencies to report within 30 days on steps to curb online gambling advertising and asked why a 24/7 monitoring team should not be mandated, as we reported in the Bangladesh court directive. In India, a consumer group estimated illegal gambling deposits approach $100 billion annually and urged a national framework to stem youth exposure, according to our story on the risk from illegal platforms on Indian youth.
These moves do not directly change U.S. rules, but they influence global platform policies, ad standards and payment scrutiny. They also highlight a central tension for the industry: expanding responsibly while the most active new users face financial stress. As U.S. regulators weigh integrity and consumer protection proposals this fall, overseas crackdowns offer a playbook and a warning.
