Mr. Don Feeney
Director, Research & Planning
Minnesota State Lottery
Gambling and the
Millennial Generation

The Millennials
• The “Connected” generation
• Born 1982 – 2004
• Also known as
– Generation Y
– Generation C
– Generation Me
– Generation 9/11
– Peter Pan Generation

THEY ARE DIVERSE
8
White
61%
Black
14%
Hispanic
19%
Asian
5%
Other
1%
Millennials (ages 18 - 29)
White
70%
Black
11%
Hispanic
13%
Asian
5%
Other
1%
Adults (ages 30 and older)

THEY FACE ECONOMIC UNCERTAINTY
• No expectation of lifetime employment
• January 2014 youth unemployment rate was 14%
• The average Canadian student debt is estimated at $27,000
9

10

AND ARE RISK-AVERSE
11
“They’ve become the Ben Franklin Generation” – Adam Hanft in the
Huffington Post
“I have things I enjoy that are sure bets.”
“What happens if you win $100? Are you going to get the bug that I
could win more?”
“I feel guilty spending my money on a long shot.”

ENTITLEMENT AND BIG
EXPECTATIONS
12

THEY LIVE IN THE MOMENT
13
Food
29%
Entertainment
14%
Clothing
17%
Auto
14%
Alcohol
10%
Personal
5%
Misc
3%
Food & Alcohol
8%
Discretionary Purchases
“I’m conscious of budgeting, but I
don’t want to miss out on
something just because of the
financial side. It doesn’t really matter
to me right now. I can make money
later. What’s 10 bucks today?”
–Luke, 22

THEY LOOK FOR COMPANIES THAT
CARE
14
“I don’t eat at Chick-Fil-
A because they gave
money to anti-gay
movements.” –
Connor, 19
“If a cause is more local, I
tend to believe in it more.
Like a kid from my high
school had brain cancer and
the local Culver’s did
something and the whole
town came out—I really
believed in that.”
–Pete, 23
“Sometimes ignorance is
bliss, but I wouldn’t buy
any products that are
related to violence.” –
Pete, 23

BUT DEMAND THAT YOU WALK THE
TALK
15
• “I guess I’m not very trusting. And unfortunately it’s that seeing
it yourself or hearing about it from someone or that proof factor
that’s important.”
–Susan, 25
AND DON’T OFTEN ACTIVELY
CONTRIBUTE
• “My values should tell me it’s the cause, but when it comes
down to it, it’s the price that matters.”
–Tori, 22

THEY ARE TECH-SAVVY
TECH-DEPENDENT
16

THEY ARE CONNECTED
Ipsos Gaming with Millennials Syndicated Study, 2014
17
“Text me, facebook me, tweet @ me, im me
if you wanna reach me.”

DO YOU HAVE A PROFILE ON A
SOCIAL NETWORKING SITE?
6%
30%
50%
75%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Silent
Boomer
Gen X
Millennial
Source: Pew Research Center
18

81%
n/a
n/a
23%
n/a
n/a
n/a
82%
59%
33%
37%
24%
14%
12%
84%
69%
47%
45%
36%
32%
32%
2010 (n=1021)
2012 (n=1001)
2014 (n=1000)
SOCIAL NETWORKING SITES
% Registered Total Aware
continued…
98%
99%
98%
n/a
98%
98%
n/a
89%
91%
92%
95%
93%
n/a
76%
83%
n/a
55%
84%
n/a
65%
89%
Ipsos Gaming with Millennials Syndicated Study, 2014

AVERAGE NUMBER OF TEXT
MESSAGES SENT IN A WEEK - CANADA
118.5
161.4
209.8
0
50
100
150
200
250
2010 2012 2014
Ipsos Gaming with Millennials Syndicated Study, 2014
20

AVERAGE NUMBER OF TEXT
MESSAGES SENT IN A WEEK – U.S.
Ipsos Gaming with Millennials Syndicated Study, 2014
21
426.4
457.8
57.8
2014 National (n=948) MN 18 to 34 (n=778) MN 35+ (n=257)

THEY DISTRUST INSTITUTIONS
50%
39% 37%
32%
0%
10%
20%
30%
40%
50%
60%
Source: 2014 Pew Research Center poll of 1821 U.S. adults
% Politically Independent
29%
21%
16%
9%
0%
5%
10%
15%
20%
25%
30%
35%
% Religiously Unaffiliated

… AND PEOPLE
19%
31%
40%
37%
0%
10%
20%
30%
40%
50%
Millennials Gen X Boomers Silent
Percent agreeing that most people can be trusted
Source: Pew Research Center, 2012 23

THEY ARE STRESSED
• 24/7 lifestyle can be exhausting
• Nearly half feel their stress level is “very
high” or “high”
• Facebook depression  “Instead of
connecting, some become more isolated
than ever.”
Source: Indiana Education, “The Millennial Generation”
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“I like being by myself, but sometimes I
feel like that’s hard to articulate. Like if
you don’t want to hang out with people, you
always have to have an excuse. You can’t
just be like ‘I want to chill out and read.’ I
feel like it’s almost not socially
acceptable. I know it’s weird.” –Tori, 22

GAMBLING BEHAVIOR
25

GENERATIONAL ATTITUDES THAT
AFFECT GAMBLING BEHAVIOR
• Economy
• Value social experiences
• Would rather exchange skills/control for monetary risks (e.g., bet on a sports team
they’re knowledgeable about)
• Want immediate tangible or emotional takeaway for time/money spent
• Not strongly motivated by money
• Risk-averse
26

GENERATIONAL ATTITUDES THAT
AFFECT GAMBLING BEHAVIOR
• Spaces & Places
• Do not believe they frequent gambling venues
• Comfortable with use of technology, but don’t require it
• They distrust institutions
• Rituals & Ceremonies
• Rarely carry cash
• Spend entertainment money when with others
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MINNESOTA PAST YEAR GAMBLING
BY AGE
83%
88%
80%
74% 78%
54%
61%
78%
82% 83% 79%
65%
0%
20%
40%
60%
80%
100%
18-24 25-34 35-44 45-54 55-64 65+
1995
2012
28
Source: MN Gambling Survey

GAMBLING AT ALL, ON ANY GAME, FOR ALL
STUDENTS, AND FOR BOYS AND GIRLS
0
10
20
30
40
50
60
70
80
90
1992 1995 1998 2001 2004 2007 2010
All Students Boys Girls
Source: Stinchfield (2011)

GAMBLING AT ALL BY GAME
9TH GRADE BOYS
0
10
20
30
40
50
60
70
1992 1995 1998 2001 2004 2007 2010
Lottery
Cards
Skill games
Sports
teams
Casino
Online
Source: Stinchfield (2011)

2014 MILLENNIAL GAMBLING PARTICIPATION
% Participated
Source: Ipsos Gaming with Millennials Syndicated Study, 2014
74%
42%
32%
30%
25%
19%
18%
15%
12%
Lottery
Purchased raffles or 50/50 draws
Played card games such as Poker or Hold'em
Poker outside of a casino or card club (played…
Played bingo
Bet on sports pools such as at the office or bar
Played fantasy sports
Purchased pull-tabs or break opens
Purchased lottery tickets for real money on the
Internet
Bet on live horse or dog racing

2014 PAST YEAR LOTTERY PARTICIPATION
74%
58%
55%
55%
44%
35%
23%
21%
17%
15%
15%
Any Game (Net)
Lotto 6/49
Lotto Max
Instant Scratch Games
Add-on
Regional 6/49
Regional Max/ Lottario
Poker Lotto
Sports
Daily Games
Keno
Source: Ipsos Gaming with Millennials Syndicated Study, 2014

TRACKING PARTICIPATION IN GAMING ACTIVITIES AT CASINO
84%
61%
46%
28%
20%
13%
6%
3%
Any gaming activity
Play slots
Any table game
Play Blackjack
Play Roulette
Play other table games
Play Craps
Play Baccarat
continued…
Source: Ipsos Gaming with Millennials Syndicated Study, 2014

TRACKING PARTICIPATION IN GAMING ACTIVITIES AT CASINO
CONTINUED
11%
9%
6%
6%
6%
5%
Played Poker in a poker room
Played Video Poker
Play any gambling games from anywhere
within a casino using an electronic remote
device
Participate in sports betting
Participate in slot tournaments
Participated in table games tournaments

SPORTS BETTING PARTICIPATION
Sports pools
Sports wagers or bet on sports
outcomes
Betting on horse races
None of the above
% Participated
19%
18%
9%
70%
Source: Ipsos Gaming with Millennials Syndicated Study, 2014

• Games more likely to be played by younger adults than older adults
– Bingo
– Card games
– Sports pools
– Fantasy sports
– Pull tabs
• Games less likely to be played by younger adults than older adults
– Lottery
– Raffles
• No difference
– Casinos
– Racing

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FANTASY SPORTS PARTICIPATION
Any Fantasy Sport (net)
Fantasy Hockey
Fantasy Football
Fantasy Basketball
Fantasy Soccer
Fantasy Baseball
Fantasy Car Racing
Fantasy Golf
I have not played any Fantasy
Sports in the past 12 months
24%
13%
9%
6%
6%
5%
3%
3%
76%
I play in
traditional
leagues
60%
I play in
daily
leagues/
contests
21%
I play in
both
traditional
leagues and
daily
leagues
19%
% Participated Type of Fantasy Sports League
Source: Ipsos Gaming with Millennials Syndicated Study, 2014

ONLINE GAMBLING PARTICIPATION
Any game
Internet Casino
Played online Poker
Played online slot machines or spinning wheel
games
Played online Blackjack
Played online Roulette or Craps
Played online games like Caribbean Stud or Pai
Gow
For Money
32%
22%
14%
9%
8%
4%
3%
continued…
Source: Ipsos Gaming with Millennials Syndicated Study, 2014

ONLINE GAMBLING PARTICIPATION CONTINUED
Sports
Entered online sports pools or fantasy sports
pools
Placed online sports wagers or bet on sports
outcomes
Bet online on horse or dog racing
Played games online through your mobile
device
Played online skill games and card games
such as backgammon, pool, mahjong,
solitaire or crib
Played online Bingo against other players or
a computer
Wagering online on the outcome of events
For Money
14%
8%
8%
3%
10%
9%
6%
4%

ONLINE GAMBLING SPENDING
AVERAGE spend in
a typical session:
2012: $124.90
2014: $141.30
Source: Ipsos Gaming with Millennials Syndicated Study, 2014

U.S. ONLINE AND CONSOLE GAMING PARTICIPATION
4
4
Played video games such
as Nintendo, Wii,
Sony Play Station, or Microsoft
Xbox 360
Played puzzle-type games such
as word games or board games
on the internet
Played arcade-style games such
as pinball or Pac-Man
on the Internet
Played massive multiplayer
online games like World of
Warcraft, Dark Age of Camelot,
Everquest, or Guild Wars on the
Internet
Played multiple player actions
games such as Grand Theft Auto
or Moto GP 09/10 on the Internet
% Participated
73%
51%
37%
26%
24%
Source: Ipsos Gaming with Millennials Syndicated Study, 2014

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SO … HOW DO WE REACH THEM?

THANK YOU!
DON FEENEY – DONF@MNLOTTERY.COM
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