March Madness 2025: Sports Betting Market Hits $2.7 Billion Amid Growing Popularity

The 2024 NCAA Division 1 basketball tournaments, popularly known as "March Madness," have ignited an unprecedented wave of sports betting enthusiasm across the United States. This annual basketball spectacle is not only captivating fans but also transforming the sports betting industry into a multi-billion-dollar enterprise.

Highlights to Know

• Legal wagers on March Madness 2024 are expected to reach $2.7 billion, according to the American Gaming Association (AGA).
• Expanding legalization and the rise of online gambling platforms have significantly increased both the volume and value of bets placed on the tournament.
• Women's college basketball has seen a remarkable surge in betting interest, nearly tripling year-over-year.
• Sports betting companies are positioned to benefit substantially from the tournament’s widespread popularity.

The NCAA March Madness tournament, featuring over 100 games played by men’s and women’s teams over three weeks, has become a focal point for bettors nationwide. The AGA projects that this year’s legal betting handle will reach $2.72 billion, a figure that excludes informal bets among friends and office pools, which are also popular during the event.

Dave Forman, Vice President of Research at the AGA, noted in a CBS News interview, "Just a few years ago, placing a bet meant visiting a Nevada casino sportsbook or informal betting circles. Today, online betting platforms have opened the door for millions of new participants in the legal market." This shift is supported by relaxed sports betting regulations in 38 states plus the District of Columbia.

Comparable to Super Bowl Betting Volumes

Market research indicates that 75% of fans betting on March Madness in 2023 were first-time participants. Last year, 68 million Americans wagered up to $15.5 billion on the tournament, with 31 million placing bets through online sportsbooks, traditional venues, or bookies, and 21.5 million engaging in casual betting with friends.

For context, the NFL Super Bowl, the most heavily bet single game in the U.S., attracted 50 million bettors wagering $16 billion in 2023. This year’s Super Bowl in Las Vegas saw those numbers climb to 68 million bettors and $23.1 billion in bets, according to ESPN.

Women’s Basketball Drives Betting Growth

A significant driver of the surge in March Madness betting is the growing popularity of women’s college basketball. Stars like Caitlin Clark from the University of Iowa and Angel Reese from Louisiana State University have captivated audiences, leading to nearly a threefold increase in wagers on women's games compared to the previous year, as reported by Caesars Sportsbook.

Investment analysts at Jefferies highlighted in a March 13 research note the expanding U.S. sports betting market’s potential, emphasizing ongoing discussions around state legalization, promotional strategies, and profitability pathways.

Bank of America Securities pointed to key gaming companies to watch in mid-February, including DraftKings Inc. (DKNG), BetMGM (a subsidiary of MGM Resorts International), and PENN Entertainment Inc., which operates ESPNBet.

Update as of March 24, 2024: This article includes a photo from a second-round tournament game.

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