The pandemic effect: Americans are gambling more online but what are they playing?

A confluence of law changes, a pandemic and innovation has supercharged the online betting industry in the US.

Continuously collected YouGov consumer data indicates an overall increase in online gambling in the US over the last 12 months, as the nation – and the rest of the world – live an altered life during the Covid-19 era.

Our data shows an overall 11-point hike in the percentage of Americans who engage in some type of online gambling, between December 2019 and December 2020.

This increase is apparent across all age groups, including millennials. In 2019, 32% reported to have gambled online in some way. That figure shot up to 44% in 2020.

YouGov data also shows how Americans have chosen to gamble online during the pandemic.

Casino slot games, such as one-armed bandit, remain the top online gambling choice among Americans, and those game types saw the highest year-over-year increase in play, from the 5% of Americans who indicated they had played it in December 2019 to 8% in 2020. Online bingo saw a similar jump, from 4% to 7%.

This data is based on the question: “Which, if any, of the following activities have you participated in online over the last 12 months?”.

Casino table cards also saw a two-point uptick (3% to 5%) and online poker also saw a pandemic bump (4% to 6%).

Stay at home

Like other online entertainment properties, the pandemic has spurred a substantial increase in the online gambling space. Brick-and-mortar gambling venues such as bars, breweries, bingo halls, horseracing and lottery outlets are either closed or deemed too risky by consumers who would rather stay at home and avoid crowds. Our data shows nearly half (49%) of Americans are uncomfortable going to entertainment destinations and the same number are uncomfortable with going to indoor bars.

The number of Americans who reported buying a lottery ticket online increased by two points as well (5% to 7%), as did those who purchased instant/scratch tickets (3% to 4%), Mega Millions tickets (4% to 5%), Powerball tickets (4% to 5%) and Keno tickets (1% to 2%).

While many sports leagues in the US lost at least part of their respective seasons in 2020 due to shutdowns, sports betting remains a hot sector poised to continue growing following the 2018 Supreme Court decision to legalise sports betting stateside. At the time of writing, online sports betting is legal in 20 states, with bills passed in another six.

YouGov data shows small increases in sports-related gambling, including sports betting (3% to 4%) and fantasy sports (4% to 5%).

The bullish market around DraftKings is one example of the enthusiasm around the industry. In April, during the depths of the first wave of the pandemic when nearly all sporting events were cancelled as a result of the virus, the Boston-based operator went public through a blank-cheque company merger. Its stock price has been rising ever since.

The excitement around online gambling was most recently on display after UK-based Entain (formerly known as GVC Holdings), owner of the Ladbrokes and Coral brands, dismissed a £8.1bn acquisition bid from Las Vegas-based MGM Resorts, saying it “significantly undervalues the company and its prospects”.

There are no sure bets in business, but the online gambling space is ripe for a promising 2021.

Charlie Dundas is commercial director at YouGov Sport, the sports and entertainment division of global research and insight agency, YouGov. YouGov Sport tracks the public’s perceptions of sports events, leagues, teams and athletes every day in markets across the world on a daily basis.