Executive Summaries - Profile of Travelers Who Participate in Gambling, 2000 Edition

The following highlights some of the major travel and demographic characteristics of travelers who include gambling as a trip activity. Since the late 1980s, gambling has grown considerably in the U.S., and a large portion of gambling activity occurs while Americans are traveling away from home. Currently, trips including gambling account for seven percent of all U.S. domestic travel, 72.8 million person-trips in fact. This represents a 20 percent increase in gambling person-trip volume from 1994 to 1999.

Gambling as a Trip Activity

Like most travelers in the U.S., leisure purposes dominate the travel plans of gambling travelers. However, gambling travelers are three times more likely than average to travel for entertainment. Only 13 percent of gambling travelers cite business as the main purpose of trip, a lower share than the average U.S. traveler. Gambling travelers are also more likely than U.S. travelers overall to travel by air, include a stay at a hotel, motel, or bed and breakfast establishment, and have higher trip spending levels.

Similar to all U.S. travelers, shopping is the most popular trip activity for gambling travelers, accounting for one-third of person-trips that include gambling. Notably, nightlife is twice as popular for gambling travelers than travelers overall, while outdoor recreation is much less popular.

Gambling travelers are more likely than average U.S. travelers to be older adults, nearly half of whom are over the age of 55. Gambling travelers are also more apt than average to be divorced/widowed/separated, have a high school education or less, and report lower annual household incomes. And fewer gambling travelers than travelers overall own a personal computer.

Gambling By Census Regions

Nearly one in four (24%) gambling travelers resides in the Pacific census region, much higher than the region's share of overall travel would suggest (16%). The East North Central region ranks second, followed by the Mid-Atlantic, South Atlantic, and West South Central census regions. Two in five (41%) households taking gambling trips visit the Mountain census region, where Nevada is located.

Most gambling travelers tend to travel within their own census region on gambling trips. The highest shares of travelers gambling within their own region are in the Mountain and East South Central census regions. The regions with the lowest share of gambling travelers staying in their own region are the Pacific and South Atlantic census regions.

Gambling-Only vs. Multi-Activity Traveler Comparison

Gambling-only travelers-those indicating that gambling is the only trip activity from a list of 11 common activities-take 43 percent of all U.S. domestic gambling person-trips. Multi-activity travelers-travelers participating in gambling and other trip activities-take 57 percent of all gambling person-trips.

More gambling-only travelers than multi-activity travelers cite entertainment as primary purpose of trip and travel by their own auto or truck or by bus. On the other hand, greater shares of multi-activity travelers visit friends or relatives or travel for outdoor recreation. And multi-activity travelers more often include air travel as primary mode of transportation and use of a rental car as a secondary-mode of transportation.

Day trips and short overnight trips are more popular for gambling-only travelers than for multi-activity gamblers. Among those travelers who stay overnight, gambling-only travelers are more likely to lodge in hotels, motels, or bed and breakfast establishments. Consequently, larger shares of overnight multi-activity travelers stay in homes of friends or relatives or in an RV or tent. As expected, travelers who participate in multiple activities spend about 75 percent more per average trip than gambling-only travelers.

Among multi-activity travelers, shopping is the most popular trip activity and accounts for more than half of person-trips. The next most popular activities for this group are nightlife and visiting historical places or museums. Group tours are three times as popular for gambling-only travelers, compared to multi-activity travelers.

Gambling-only trips are more likely than multi-activity trips to be comprised of travelers who are older and divorced, widowed, or separated. On the other hand, trips including multi-activities are more apt to be comprised of those with a college degree, in addition to those employed in a managerial or professional capacity. Moreover, multi-activity gambling travelers are more apt to have a child in the household, have higher annual household income levels, and include owners of a personal computer and a cellular phone.

Overnight vs. Day Trip Comparison

The majority (87%) of all U.S. domestic gambling person-trips are overnight trips; 13 percent are day trips. Short trips of one or two nights in duration and medium trips of three to six nights are more popular than long trips of seven nights or more. Gamblers taking short overnight trips are the most likely to travel for entertainment, while those taking long overnight trips are the most likely to visit friends or relatives or travel for outdoor recreation.

Gambling travelers on overnight trips have much more time available than those on day trips and thus, have a greater propensity to include activities in addition to gambling. Of course, gamblers on day trips have very little time for other activities besides gambling. Yet, among gamblers on day trips, shopping is still the most popular trip activity and accounts for only about one-tenth of person-trips.

Bus travel is much more popular on day trips including gambling-not surprising, since day trips are more likely than overnight trips to include group tours.

The demographic profile of gambling travelers on overnight trips differs greatly from that of gambling travelers on day trips. For example, gamblers on overnight trips are more likely to be younger, have a college degree, and be employed in a managerial or professional capacity. Moreover, they are more apt to have a child in the household and higher annual household income levels. Ownership of a personal computer or cellular phone is also higher for this group. On the other hand, gamblers generating day trips are more likely to be older and have a high school education or less.

Hotel Stay vs. Non-Hotel Stay Comparison

About three quarters (79%) of all U.S. domestic overnight gambling trips include a stay at hotels, motels, or bed and breakfast establishments (defined as a "hotel stay"). Overnight trips that include lodging elsewhere (including homes of friends or relatives, condos or timeshares, and RVs or tents) account for one in five of all gambling trips.

Gambling trips that include a hotel stay are more likely than non-hotel trips to be for entertainment or business purposes and to include air or bus transportation. These trips are also shorter in duration than non-hotel trips and have higher trip spending levels. On the other hand, non-hotel gambling trips are more often taken to visit friends or relatives and thus, involve lodging at homes of friends or relatives.

Interestingly, hotel trips involving gambling include fewer common trip activities than non-hotel trips. So participation levels in the remaining ten activities are generally lower also. Group tours, though, are much more popular on hotel trips including gambling.

There are just a few major demographic differences among trips by gamblers who stay at a hotel compared to those who stay elsewhere. Notably, hotel trips including gambling are more apt to be taken by travelers with higher annual household incomes.

Gambling Travelers Across Trip Spending Groups

Households that include gambling on a trip spend an average of $655 per trip. This includes the total amount spent on the trip, except for the cost of transportation to the destination. Four in ten of all U.S. domestic gambling household trips include spending of $500 or more per trip (high-spend trips). One-third of households spend between $200-$499 (medium-spend trips) and one-quarter spend less than $200 (low-spending trips) per trip. As expected, higher trip spending correlates with many travel and demographic characteristics, such as hotel use, long trips, and higher household incomes.

Naturally, entertainment is the primary purpose of trip for a large share of all spending segments including gambling as a trip activity. As expected, trips to visit friends or relatives are more popular for low-and medium-spend trips than high-spend trips.

Not surprisingly, a greater share of high-spend trips than lower trip spending segments include air travel as primary mode of transportation and, consequently, a rental car as a secondary-mode of transportation. Travel by car or truck is more popular on low- and medium-spend trips. Low-spend trips including gambling register the highest incidence of travel by bus.

As expected, travelers who spend more money, spend more days away from home on a trip. High-spend trips are at least twice as long in duration as low- and medium-spend trips. Among overnight trips, again, as spending increases so does the likelihood to stay at a hotel motel, or bed and breakfast establishment. Conversely, lower spending increases the likelihood of a stay at homes of friends or relatives.

The number of activities included on a trip also correlates with spending levels. Low-spend trips are the most apt to include gambling as the sole trip activity, while high-spend trips are the most apt to include additional trip activities. Low-spend trips including gambling are the most inclined to include a group tour.

High-spend trips including gambling are taken by travelers with the highest annual household incomes ($50,000+), compared to lower trip spending segments. In addition, greater shares of high-spend gambling trips are reported by travelers who are married, have completed college, and are employed in a managerial or professional capacity. High-spend gambling trips are taken by more tech-savvy households that own a personal computer or a cellular phone.

On the other hand, a greater share of low-spend gambling trips than high-spend gambling trips are reported by those age 65 or older, divorced/widowed/separated, or with a high school education or less. Twice as many low-spend trips as high-spend trips are taken by households with annual household incomes under $30,000.

Age Group Comparison

Currently, 44 percent of gambling trips are taken by Mature households (those with household heads aged 55 years or older). Another 38 percent of gambling trips are taken by Baby Boomers (35-54 years), while the remaining 18 percent of gambling travel is generated by Generations X and Y (18-34 years). The Mature segment generates a much larger share of gambling travel (44%) than its share of the total travel market (31%) would suggest.

Mature trips including gambling have the highest share of travel for leisure, especially for entertainment purposes. Bus travel is also more popular among members of this segment as compared to the other age groups. These Mature trips are also noticeably shorter in duration than those of younger age groups. Generation X and Y trips involving gambling are the most apt to include air travel and lodging in homes of friends or relatives. Still, there is no real difference across age groups in the popularity of hotels, motels, or bed and breakfast establishments when it comes to trips including gambling.

Mature trips are also the most apt to include gambling as the sole trip activity, followed by Baby Boomer trips. Generations X and Y, on the other hand, have the highest share of travelers participating in multiple activities, such as shopping, nightlife, and outdoor activities. On average, Baby Boomers spend the most per trip including gambling as an activity.

As expected, there are major demographic differences in trips including gambling across the three age groups. Gambling trips taken by Generations X and Y are the most likely to be reported by those single and/or college educated, while Baby Boomers taking gambling trips are the most likely to be married and/or employed in a managerial or professional occupation. Baby Boomer trips are also comprised of travelers with the highest average annual household incomes and proportion of households that own a personal computer. As expected, this group is the most apt to have a child in the household. Mature gambling trips are the most likely to be taken by those divorced, widowed, or separated or those retired.

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