Meredith Whitney, an American businesswoman known as “The Oracle of Wall Street,” commented on some of the latest trends in America and the “meteoric growth” of sports betting. Appearing on CNBC’s Squawk on the Street panel, Whitney described sports betting as one of the main drivers of leisure revenue.
Whitney said that she has always been extremely interested in consumer data because it has a huge impact on housing and the economy. She would check consumer data monthly, making sure that she was keeping up with the latest trends.
A few weeks ago, Whitney noticed that the fastest-growing verticals in the entertainment sector are fantasy sports and online sports betting. This piqued her curiosity, causing her to evaluate more consumer data. While sports betting was legalized outside of Nevada only five years ago, now 29 states plus the District of Columbia offer wagering on sporting events.
However, the growth of sports betting has had some negative impacts on the American youth as well.
Sports Betting Is Affecting Household Formation Rates
Whitney pointed out that many sports bettors are young men. She paired this statistic with other statistics, such as the fact that 63% of young men in the USA are single – the highest number ever recorded. In addition, she said, 50% have no interest in dating whatsoever.
Thirty percent of young men said they have not had sex in over a year and don’t seem to care.
Meredith Whitney
Whitney implied that the growth of the entertainment sector, including sports betting, has been providing sufficient pleasure to young men, making them disinterested in dating.
Whitney also pointed out that many young men have grown up with smartphones. As a result, online sports betting has a very strong appeal to such consumers, providing them with hours of fun at the tips of their fingers.
The Oracle of Wall Street expects sports betting revenues to skyrocket if California and Texas legalize sports betting, providing the industry with an explosive boost. However, she also addressed another matter which is the effect of sports betting on housing.
Whitney said that America is experiencing the lowest household formation rates in over sixty years.
So, you have young men who don’t want to date, and young women who are spending their time really with Instagram moments, going to Taylor Swift concerts.
Meredith Whitney
As a result, 74% of the housing stock is owned by people over 50 and 90% of the housing stock is owned by people over 40. Whitney concluded: “So, when these people wanna sell, which I believe they would start to sell with a vengeance next year, who are the buyers gonna be?”