Gaming and Betting: Millennial Generation in Canada Prepared by: Jaime Morrison and David Coletto May 31, 2012
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GAMES AND BETTING , THE MILLENNIAL GENERATION IN CANADA
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EXECUTIVE SUMMARY In a November 2011 national survey we asked 1005 Canadian Millennials between the ages of 18 and 30 and 1063 randomly selected older Canadian adults about their betting and gaming habits, motivations, and barriers. We found some similarities between Millennials and older Canadians as well as some differences that set Millennials apart. This study is divided into four sections; firstly we provide a brief discussion about the Millennial generation. We then discuss out results throughout the following three sections, gaming in Canada, Millennials gaming preferences, and the future of online gambling.
Key Findings While Millennials were more likely to play a lottery than participate in any other gaming activity in the past year, they were still less likely overall than older Canadians to play the lottery. Not surprisingly, Millennials were more likely to play betting games online than older Canadians. They were also much more comfortable with the idea of gambling online. When we asked what type of games Millennials were playing online, poker was most popular while online lotteries were well back.
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2.0 The Millennial Generation Abacus Data’s Millennial Research Practice conducts high quality and innovative research for clients who wish to better understand Canadian Millennials, also known as Generation Y. Our team is composed entirely of Millennials allowing us to offer our clients unique insight in the minds, motivations, and thinking of our own generation. Instead of looking in at the Millennial generation from the outside, our team looks at our own generation from within. This provides better insight and analysis about what Canadian Millennials are thinking, how we are behaving, and what we want from businesses and organizations in Canada. Previous research surrounding the Millennials in Canada has focused mainly on the differences between our generation and others. While inter-generational differences are important, we know that not all Millennials are alike. And so for marketers, communicators, and policy makers, understanding the intricacies of the Millennials will make it easier to reach out, engage, and convert Millennial Canadians into loyal customers, brand advocates, and engaged citizens. Who are the Millennials?
Born between 1980 and 1995, Millennials currently comprise about 26% of the Canadian population and by 2020 will account for 42% of workingaged adults. In 1981,six people were working for each retiree in Canada.
The Millennials are the Echo Boom to the Baby Boom generation
By 2031, Statistics Canada projects that the ratio will be reduced to three workingaged people to every one dependent. As we exit the current recession and baby boomers seek retirement, our generation, the Millennials will be the most important emerging market not only for consumer goods and services but for driving innovation in business and public policy development. Perhaps more importantly, we will bare the load of supporting our families and other Canadians as they retire and increase demand on public services such as health care and public pension plans. We know that Millennials think differently, communicate differently, and have different life expectations than any other generation. Since before adulthood Millennials have had access to information on their own terms resulting in a noticeable shift in the normal relationship between children and adults. We were raised believing that we are important people that could achieve a lot and although this information access is one of the key things that define how our generation is
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different we find the greatest utility in using the power of the Internet to connect with each other. While we’re well suited to collaborating in groups we have a heightened sense of our self-image and customization is very important to help us stand out. We may seem “entitled” but ultimately we are eager to participate, contribute, and want to feel like we are making a difference in the workplace and group endeavours. Growing up with the Millennial generation we understand these differences first hand, now entering the workforce generational divides become even clearer. Our approach to studying ourselves allows us to appreciate these cohort differences and seeks to understand how these descriptions apply in similar and dissimilar ways to various segments within the Millennial generation.
DEFINING THE MILLENNIAL PERSONALITY We’ve identified 14 character traits that Millennials use to describe themselves. Through cluster analysis controlling for gender, these descriptions provide the basis for our YSegments, a proprietary segmentation of the Canadian Millennial market. YSegments - Canadian Millennial Generation Segmentation
Using these character traits we formed six clusters that help to define the Canadian Millennial group. Each group is Achievers These go-getters want it all, they place a high priority on both having a family and a successful career. While achievers are outgoing, adventurous and willing to try new things they are not normally described as carefree. In fact, many would consider them a little up-tight. Achievers identify themselves as stylish, cultured and eco-conscious. They are likely to buy organic foods, go to the gym or a yoga class and would rather avoid technology when they can. The achievers make up 17 percent of Canadian Millennials surveyed. This group is mostly female (89%) with fewer male Millennials (11%). Half of Achievers (51.5%) are currently enrolled in either University or College and have the highest percentage of Millennials currently enrolled in full time studies at university. 37.4% of Achievers plan to return to school for more education as soon as possible, notably few (only 5.8%) are sick of school.
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Pacers While they may be shy, pacers know that people look to them for information. They grew up as important trendsetters in certain areas, like the technology industry, and they know this is their strength. Pacers prefer to congregate with people who have similar interests instead of following the flock to malls and parties. These self-professed “couch potatoes” may prefer to stay home but they are more likely to communicate with people from all over the world through social networks, online groups, and multiplayer videogames online. Pacers make up only 16% of Millennials surveyed.This group is made up of 62% males and 38% females. Four in ten (41%) pacers have at least one parent that was born outside of Canada and for 32.7% of pacers both parents were born outside of Canada. 18.6% of Pacers are of East Asian or East Indian origin. Few pacers (24.2%) are interested in returning to school anytime soon. However 28.7% would consider returning after they gain some work experience. Sparks Artsy-Green-Millennials are eco-conscious, creative and want to make a difference. They tend to be more shy than outgoing. They value having free time and like living in the city where they can be close to everything. Most artsy-greens are working part-time jobs just to get them by and aren’t driven by career success right now. Artsy-greens would rather have a quiet night in than go out to a party. Sparks make up 17% of Millennials surveyed. The sparks are made up of 64% female Millennials and 36% male Millennials. This group is made up predominantly of Millennials with European ancestry. Many (38.7%) sparks would be happy to return to school as soon as possible and 29.5% would like to return to school after they gain some work experience. With many sparks working only part time notably few sparks (3.7%) see the cost of education as a barrier to returning to school.
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Stampeders Stampeders are a unique male segment. They like to be in the centre of it all and tend to be outgoing, athletic, stylish, cultured and adventurous. They like to party, play videogames, watch sports and enjoy gambling. They are creative, eco-conscious and aware of new technology. . Right now they are focused on their career and don’t mind living at home until they can afford a place of their own. Stampeders are confident of themselves in most things and, for example, most believe that they would do better than average in a fistfight. The Stampeders make up only 14 percent of Millennials surveyed. Among the 100% male group fully 18.2% of Stampeders are French Canadian. Around 3% of Stampeders have African ancestry and 1.5% said they have Arabic ancestry, more than any other group. 38.2% of stampeders would like to return to school for more education as soon as possible. Additionally, 33.1% feel that they would like to return to school after they gain work experience. Fireflies These footloose Millennials like to go out and have a good time. They are adventurous, outgoing and carefree. Driven by spontaneity they don’t usually make plans in advance. Whether they are in the gym or outdoors most footloose Millennials like to be active. Despite their wild ways, they hope to make a difference in the world someday. Fireflies make up a large group of the Millennials surveyed (18%). This group is mainly female (84%) with fewer males (16%). One third of Fireflies have a university degree, and another third are currently enrolled with a university full time. Over half (54%) attended college and 9% currently are enrolled with a college. While this is not the most academic group 35.3% of footloose Millennials would like to return to school for more education as soon as possible, however , 21.2% do not think returning to school will make them better off.
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Simple Lifers Simple lifers have worked to get where they are. They are content working for a large company and hope to own a comfortable home in the suburbs someday. These Millennials like to wear nice but functional clothing and drive nice but functional cars. Most simple lifers do not consider themselves eco-conscious or creative and in their free time they prefer to kick back and watch a sports game. Simple Lifers make up a large group of the Millennials surveyed (18%). This group is closest in representation from both males (52%) and females (48%). 20.7% of all Simple Lifers are French Canadian . Most Simple Lifers have either a university degree (46%) or attended college (46%). 36% are currently enrolled at university and 10% at college. Relatively few simple lifers would like to return to school for more education. They are more likely than any other group to be sick of school (12.4%) or think that more school will not improve their situation (23.2%).
The Canadian Millennials
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GAMING IN CANADA This report highlights a sample of findings from a large national survey conducted by Abacus Data in November 2011. The objective of the survey was to get a comprehensive understanding of Millennials in Canada by looking at all aspects of their lives including communication, consumer behaviour, and their attitudes towards politics. The goal of this section of the survey was to understand the role of gaming in the lives of Millennials and to identify generational differences between Millennials and older Canadians. We conducted research into how frequently Canadians played betting games. Our measures include gambling at a casino, playing poker online, betting on a professional sport, joining a sports pool and playing a lottery. We found a strong relationship between generation and likelihood of participating in various gaming activities. There are many Millennials who have been to a casino a few times in the past year. Less than 10% of the Millennials we surveyed said that they go to a casino more regularly. Total casino attendance was 39% of Canadian Millennials. Similarly, 37% of Canadians from older generations also said they had gambled at a casino over the course of last year.
Gambled at a Casino Other Generations
3%
Millennials 2%
0%
8%
26%
7%
5%
30%
10%
15%
Gambled at a casino Regularly
20%
25%
30%
35%
40%
Gambled at a casino Sometimes
Gambled at a casino A few times
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45%
Online poker was the least popular betting game among older Canadians (14%). In contrast, one in five Millennials (21%) have played online poker in the last year. Not surprisingly older generations were much less likely to say they had played poker online. The next section discusses this online participation trend further.
Played Poker Online Other Generations
3%
Millennials
4%
2%
7%
5%
0%
14%
5%
10%
Played poker online Regularly
15%
20%
25%
Played poker online Sometimes
Played poker online A few times
Betting on professional sports is not particularly popular among Canadians, though around 15% of Canadians said that they did this at least a few times last year. Fewer Millennials have placed professional sporting bets, although Millennials were more likely to bet on a professional sport than compared to other generations.
Bet on a Professional Sport Other Generations
2%
Millennials
3%
3% 0%
2%
8%
4% 4%
10% 6%
Bet on a professional sport Regularly Bet on a professional sport A few times
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8%
10%
12%
14%
16%
Bet on a professional sport Sometimes
18%
About a quarter of all Canadian adults said that they had joined a sports pool in the past year. There was little difference between how frequently people from the Millennial generation and other generations participated in a sports pool.
Joined a Sports Pool Other Generations
5%
5%
Millennials
5%
5%
0%
5%
13%
14%
10%
Joined a sports pool Regularly
15%
20%
25%
Joined a sports pool Sometimes
Joined a sports pool A few times
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Of all betting games, Canadians were most likely to play lotteries.
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Millennials were more likely to play a lottery than participate in any other gaming activity in the past year. Two thirds of Millennials surveyed in Canada said they had played the lottery a few times or more. They were also much more likely to play the lottery regularly (11%), compared to other gaming activities. However, lottery was the only area measured where the activity is less popular with Millennials than it is with older generations. Even more, 86% of people from other generations said that they had played a lottery. Notably 38% of older Canadians said that they play regularly.
Played a Lottery Other Generations
38%
Millennials
11%
0%
10%
25%
26%
20%
Played a lottery Regularly
30%
23%
29%
40%
50%
Played a lottery Sometimes
60%
70%
80%
90%
100%
Played a lottery A few times
We further analyzed the frequency of the top gaming activity, lottery, among Millennials. Our results show that this game proves to be more popular among some segments than others. Fireflies and Achievers (two female dominated groups) were most likely to say that they play the lottery sometimes or very often. Sparks and Simple Lifers were least likely to say that they would sometimes or often play the lottery.
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Sparks are eco-conscious, socially aware and seek out higher education. This segment is more likely to hold a part-time job.
Among those 115 Millennials who said they play a lottery regularly 24% were from the Simple Lifers segment, 21% were from the Fireflies segments and 17% were from the Pacers segment. The Achievers were most likely to say that they had played a lottery sometimes or a few times. Sparks were most likely (22%) of any group to never play a lottery game.
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TYPES OF MILLENNIAL GAMBLING We asked Canadians whether or not they have ever gambled online, the chart below represents the percentage of each generation who said “yes”. Millennials and Generation X’ers (ages 31-44) were much more likely to have gambled online, 15% and 14% respectively, compared to the baby boomers (8%) and the greatest generation (3%). This is in-line with the levels that each generation has adapted to the use of technology.
Have you ever gambled online? (Yes Only)
Millennials
15%
Generation X
14%
Baby Boomers
8%
Greatest Generation
3% 0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
While Millennials are more likely to gamble online, we tested to see whether this was even more popular among a specific segment. We found that online gambling was much more popular among Stampeders than any other group.
Stampeders This all male segment likes to stay on top of trends and is more willing to try new things. They like to be in the centre of it all, they’re aware and up to date on most current trends and current affairs.
The graph below shows that around 15% of most other segments have experience gmabling online. Twice as many Stampeders have gambled online, a distinct difference among these groups.
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Online gambling is least popular among Achievers (9%) and Fireflies (13%). The Achievers and Fireflies segments are mostly made up of female Millennials. These groups are also more likely to play a lottery sometimes or often.
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We then asked those who gambled online what type of games they played, the majority of both Millennials and non-Millennials played poker online. One in ten (11%) of Millennials who gambled online played poker very often and another three in five (58%) played sometimes. Nearly one-fifth (18%) of non-Millennials who gambled online played poker very often and just about half (47%) played poker sometimes. Millennials bet on sports online more often than non-Millennials, 14% bet very often and 28% bet sometimes, while with non-Millennials only eight percent bet very often and 26% bet sometimes. Non-Millennials much preferred casino style games online to Millennials, with 45% of non-Millennials playing them compared to only 32% of Millennials.
Of the following list of games, which did you play online very often and sometimes? 11%
58% 47%
18% 14% 8% 2% 3%
28% 26%
12% 11%
3% 9%
29% 36%
3% 4%
17% 21%
3% 4%
17% 21%
0
0.1
0.2
0.3
0.4
0.5
0.6
Millennials - Very often
Millennials - Sometimes
Non-Millennials - Very often
Non-Millennials - Sometimes
0.7
Canadians were given a veriety of option on why they gambled and asked to rank them. Both Millennials and non-Millennials said that the main reason why they were
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0.8
gambling was that they were looking to make money. The thrill of the game was ranked 2nd overall, with slightly more Millennials ranking it first than nonMillennials. Percentage Ranked 1st
Percentage Ranked 2nd
Average Ranking
Millennials
NonMillennials
Millennials
NonMillennials
Millennials
NonMillennials
Looking to make money
47.1%
48.3%
21.6%
22.6%
2.16
2.08
It is thrilling
27.2%
26.5%
30.1%
32.0%
2.45
2.39
A way to spend time with friends
15.5%
13.1%
19.4%
21.1%
3.08
3.13
It is something to do to pass the time
7.8%
10.3%
21.4%
20.6%
3.29
3.13
I am good at it
2.9%
1.8%
7.8%
3.6%
4.02
4.28
Although only a small portion of Millennials gambled online, it is a substantial increase from their parents’ generation. If and when we gamble online we choose to spend the bulk of our time playing social games like poker, sports pools and casino games, which is not surprising given our love of online communities. If the other forms of online gambling could build more social aspects around them, it would not be surprising to see even further participation from Millennials.
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THE FUTURE OF ONLINE GAMBLING We found that while most Canadians dislike gambling, fewer Millennials feel a strong dislike towards it. More than half (54%) of non-Millennial Canadians strongly disliked gambling, compared to 10% less among Millennial. Although, four percent more Millennials reported disliking gambling compared to non-Millennials. Only, a very small percentage (2%) of Millennials either liked or really liked gambling more than other generation. Among non-Millennials 20% had a neutral opinion on gambling, whereas Millennials were slightly higher at 24%.
44%
22%
54%
0%
10%
20%
30%
Strongly Dislike
24%
18%
40% Dislike
7% 3%
20%
50%
60%
70%
Neutral
Like
Really Like
6% 2%
80%
90%
The vast majority of Canadians were also uncomfortable with the idea of gambling for actual money online. Non-Millennials were much more uncomfortable with the idea, with nearly three-quarters (73%) not at all comfortable with online gambling and another 18% not that comfortable. This is compared to only 53% of Millennials who responded not at all comfortable and 28% who were not that comfortable. That leaves 15% of Millennials who said they were somewhat comfortable with online gambling and four percent who were very comfortable. This is much higher than the six percent of non-Millennials who were somewhat comfortable and the remaining three percent who were very comfortable.
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100%
53%
28%
72%
0% Not at all comfortable
20%
40%
Not that comfortable
15%
18%
60% Somewhat comfortable
80%
Millennials are a generation that has been defined by fast moving technology.
CANADIANMILLENIALS.CA
6% 3%
100%
Very comfortable
Clearly while Millennials are only slightly more comfortable than non-Millennials with gambling their money, they are much more inclined to do so online than their non-Millennial counterparts. Millennials are a generation that has been defined by fast moving technology. We have been quick to move many aspects of our daily lives online and this is reflected by our comfort level with online gambling.
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4%
CONCLUSION The future of gaming in Canada will largely be determined by whether Millennials show interest in gaming. With the proliferation of online gaming sites, a challenge exists for casinos and lottery as they seek to grow their market with Millennials. Our research finds that Canadian Millennials are less likely to visit a casino and play the lottery than older Canadians. While much of this is likely a result of lower disposable incomes among Millennials, the popularity of online gambling presents a challenge to the gaming industry in Canada. Of all betting games, lottery remains the most popular among Canadians from every generation. However, online lottery games are less popular than other online betting games. Looking within the Millennial generation, our research suggests that the primary target for the gaming industry are Stampeders. While online games are most popular among Stampeders, this segment group is not among the most likely to play a lottery game offline. Fireflies and Achievers are least likely of any Millennial group to gamble online, however this group plays lottery games offline more often. This survey reveals the potential for change in the betting and gaming industry as Millennials emerge as the primary consumer group. New technologies, limited incomes, and high employment all pose a risk to the gaming industry in Canada. Nonetheless, there are many opportunities for growth within the Millennial market as evidenced by the fact that Millennials admit to being more comfortable with online gambling.
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METHODOLOGY In November 2011, Abacus Data Inc. conducted an online survey among 2,068 randomly selected Canadian adults from an online panel of over 400,000 Canadians. The margin of error—which measures sampling variability—is comparable to +/-3.2%, 19 times out of 20. Results of the survey were statistically weighted by gender, age, region, language, and immigration status using census data from Statistics Canada and by past vote using Elections Canada results from the 2008 General Election. Totals may not add up to 100 due to rounding. For more information about the poll’s methodology, visit the Abacus website at www.abacusdata.ca The table below reports the unweighted and weighted distribution by region or province. Unweighted Count (All Respondents)
Weighted Count (All respondents)
Atlantic Canada
154
142
Quebec
551
481
Ontario
745
677
Prairies (MB and SK)
153
266
Alberta
208
226
BC
233
276
2,045
2,068
Region/Province
Total
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