Forgive my brief editorialization, but when I'm not writing for this space, one of my other duties is covering the casino gaming industry.
I mention this because by way of that gig, I get some interesting research reports and studies sent my way. Not surprisingly, most aren't relevant to the Advisorpedia universe, but one I recently received caught my because it has some interesting facts that are potentially applicable in how advisors address the increasingly important female demographic.
To be sure, the Hot Paper Lantern “2021 State of the Sports Betting Industry” report doesn't scream “must read” for financial advisors, but some of the data in the study related to women are of interest to advisors. Without further ado, let's examine some of the compelling nuggets from this report and how they can translate to advisors' interactions with female clients.
It's important to note that the 2018 Supreme Court ruling on the Professional and Amateur Sports Protection Act (PAPSA) set the stage for states to make their own policy regarding regulated sports wagering. As such, the activity still isn't legal in all 50 states, Today, the roster is 21 states and Washington, D.C. with another 10 legal, but not operational.
Even with fewer than half the states offering regulated sports wagering, the number of women participating in that endeavor jumped to 33 percent, up from 28 percent in the prior year, according to the Hot Paper Lantern study.
Sure, we can sit here and debate the propriety of sports betting or any form of gambling for that matter, but the fact is that data showing more women are engaging in this pursuit is confirmation of several things relevant to advisors. First, women are looking to build wealth. Second, they have no fear about entering asset classes previously viewed as “male dominated.”
Finally, the fact that women are getting into the sports betting game is noteworthy to advisors because it means they are also likely to have interest in investing. Like it or not, professional sports bettors – and yes, that vocation exists – approach their field in similar fashion to professional traders. There's research, money management and exercising of discipline involved – all pursuits numerous academic studies confirm women are superior at to men in financial markets.
Advice Wanted, Too
The betting study also indicates women want access to advice and research and will commit financial resources to that effect.
“Even more than everyday betting, we found that women bettors were more likely to pay for access to betting analytics tools to guide their handicapping (20% female to 15% male),” according to Hot Paper Lantern.
Know that there are some similarities between betting and investing, the takeaway for advisors here is that not only do female clients want advice, they're likely to be more receptive to it than their male counterparts.
No, advisors shouldn't extol the virtues of sports wagering to clients, regardless of gender, but if they open their eyes to some synergies here, they'll be reminded of the importance of cultivating relationships with female clients and not waiting to do so.
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