March Madness Bets Projected To Hit $4B, as College Sports Gambling Addiction Lawsuits Mount

Sports betting profits have increased at record rates in recent years and are expected to continue to do so, even as problem gambling concerns grow.

Experts project that consumers will place about $4 billion in bets through sportsbooks nationwide during this year’s March Madness college basketball tournament, contributing to the growing concerns about gambling addiction among college-age males spreading across the country.

H2 Gambling Capital, a company that provides marketing data on the global gambling industry, released a report (PDF) on March 6 that predicts wagers placed on the annual NCAA March Madness tournament will grow by nearly 7% this year. The increase is expected to be driven by continued industry growth and the legalization of sports betting in Missouri, which took effect in December 2025.

If accurate, the company’s predictions would continue a record growth streak for the gambling industry over the last several years, which is likely to continue unabated into future years, according to the data.

Sports Gambling Addiction Concerns

While the numbers are likely encouraging for those in the industry, a growing number of critics are raising concerns over the rapid spread of sports betting in the U.S., and aggressive marketing tactics employed by many popular online sportsbooks, which are fueling gambling addiction problems nationwide, especially among college-age males.

In 2018, a decision by the U.S. Supreme Court cleared the way for state legalization of sports betting operations, often referred to as sportsbooks. This led to the introduction of sports gambling apps like DraftKings, FanDuel, BetMGM and others, which have made gambling available around the clock, allowing users to place wagers instantly from their phones while watching live games. Critics argue this ease of access has fundamentally changed gambling behavior, particularly for younger users who have grown up with smartphones and digital payment systems.

Many critics claim sports betting apps use predatory tactics, including data mining algorithms and misleading promotions, to target potential problem gamblers and encourage addictive behavior. Consumer advocates warn that many of these marketing campaigns are aimed at college students and young adults. The advertising often helps normalize gambling at a time when many are managing money independently for the first time, leading them to underestimate the financial risks involved.

Concerns over the growing addiction rates and marketing tactics have led to sports gambling addiction lawsuits now being filed in courts nationwide, alleging that the platforms intentionally design their apps to fuel gambling addiction to make profits off of consumers’ severe financial losses.

The March Madness tournament is a bracketed elimination competition involving college basketball teams from across the country, creating a multi-week event that generates dozens of games and betting opportunities. The structure, combined with intense fan interest and bracket competitions, has long made the tournament attractive to bettors. Even before legalization, informal office pools and brackets made March Madness one of the most widely wagered sporting events in the country.

That longstanding betting culture has only intensified as legal sports gambling has expanded across the United States. According to the H2 Gambling Capital report, March Madness is now the most bet-on sporting event in the U.S. sports calendar, even though the Super Bowl remains the single most wagered one-day event. The report estimates about $1.4 billion was bet on Super Bowl LX earlier this year, but the NCAA tournament ultimately generates more wagering volume because of the sheer number of games played over several weeks.

As access to sportsbook apps continues to expand, analysts expect wagering on the tournament to keep climbing. The report predicts sportsbooks will take in about $4.0 billion in bets during the 2026 tournament, representing a 6.7% increase from last year’s event. According to the report, that growth is largely driven by the continued expansion of legalized sports betting across U.S. states, including the addition of Missouri’s betting market, which launched in December 2025.

The growth follows a steady rise in March Madness wagering over the last several years. The report estimates betting on the tournament increased from about $2.2 billion in 2023 to nearly $3.7 billion in 2025, before reaching the projected $4 billion level this year, reflecting the continued spread of mobile sportsbook platforms nationwide.

While sportsbooks process billions in wagers during the tournament, only a portion of that money is ultimately retained by operators. The report estimates sportsbooks will keep about 7% of wagers as profit, known as the hold rate, during this year’s event. That margin is expected to rise from the 6.1% hold rate recorded last year, when favorable outcomes for bettors lowered sportsbook profits after all four No. 1 seeded teams reached the Final Four. Based on those projections, sportsbooks could generate about $279 million in gross gaming revenue during the tournament, representing an increase of more than 23% compared to last year, the report said.

The report also highlights the broader role basketball plays in the expanding sports betting market. Basketball accounted for about 32% of all sports betting handle in the United States in 2025, making it the most popular betting sport nationwide. Analysts estimate roughly 20% of that basketball wagering comes from NCAA college games, with betting activity typically peaking in March when the NCAA tournament begins.

College Sports Betting Addiction Lawsuits

While the report focuses on industry growth and market forecasts, critics say the rapid rise of sports betting raises broader questions about how widely accessible gambling has become, particularly during a major sporting event centered around college athletics.

Consumer advocates and public health researchers warn that smartphone betting apps now allow users to place wagers instantly while watching games, making it easier to gamble repeatedly during tournaments like March Madness that feature multiple games each day.

Those concerns have increasingly become the focus of sports betting addiction lawsuits filed against companies such as DraftKings, FanDuel and other sportsbook operators. The lawsuits allege that gambling platforms use aggressive promotions, targeted advertising and app-based engagement tools designed to encourage continuous wagering, sometimes among college students and young adults who may be especially drawn to betting on college basketball games.

As a result, sports betting addiction lawyers are investigating cases for individuals between the ages of 18 and 30 who suffered significant financial losses after using online sportsbooks, often exceeding $10,000. Platforms named in ongoing investigations include:

To find out whether you qualify for a sports betting lawsuit, submit information about your potential claim for an attorney to review. All cases are handled on a contingency fee basis, meaning you pay nothing unless a settlement is obtained in your case.