Sports betting feels like entertainment, but it is increasingly tied to behavioral finance trends, emotional decision-making, and direct backlash toward the athletes on the court.
Why does online sports betting feel like a new phenomenon?
It’s likely because it wasn’t until 2018, when the U.S. Supreme Court struck down a federal law that had prevented most states from legalizing sports betting, that states were free to allow it. That opened the door for sports betting to become legal and socially acceptable in many states.
By 2023, sports betting (both in person and online) was generating more than $120 billion in bets annually. And all along the way, gambling websites have been perfecting their marketing and mobile apps have made the betting process feel more like a game than gambling.
What used to be office pools and friendly wagers has transformed into a multi-billion-dollar machine. As sports betting hits record levels, a darker reality is emerging.
The scale of betting has exploded
Estimates predict that Americans will legally bet around $3.1 billion on March Madness games this year, which is roughly double the amount that was wagered on this year’s Super Bowl and a significant increase in betting over the past three years.
Commercial gaming revenue was $71.92 billion in 2024, a record-breaking number that continued a trend of year-over-year increases in legal gambling revenue in all forms. People place bets through physical and online sportsbooks, making the act of legally gambling on sports easier than ever.
Betting is now part of the game experience
These days, it’s rare to watch a game without seeing an ad for sports betting, and according to the American Gaming Association, 43% of those digital sports betting ads didn’t comply with state gaming regulations that require responsible gaming messaging.
When sports betting ads become an expected aspect of the sports viewing experience, the two start to feel like they go hand in hand.
Why Sports Betting Feels Like Part of the Game
Sports betting apps further normalize betting and turn it into entertainment. Betting on your phone makes it easy to act on impulse, and the apps are built with rewards, reminders, and live bets that keep you hooked. A simple “almost won” can push you to keep going.
States legalizing sports betting, when paired with societal acceptance and easy access through websites and mobile apps, set the stage for this explosion of sports gambling.
But what does that mean for March Madness and fans?
It turns out that the impact can be profound.
Financial consequences are emerging
We celebrate buzzer-beaters, we fall in love with Cinderella stories, but just under the surface, there are real consequences to sports betting.
According to the National Bureau of Economic Research, online sports betting is linked to lower savings, increased credit card debt, and more overdrafts.
Why Financially Vulnerable Households Are Hit Hardest
Households that are already struggling financially are the ones experiencing the most profound impacts to the easy access to sports betting. It’s clear that the impact of sports betting on financially vulnerable households extends far beyond the cost of the entertainment gamblers enjoy while placing bets.
The research also suggested that financially vulnerable households engaging in sports betting are more likely to use credit to fund their betting and to invest less money into brokerage accounts. It’s a recipe for big problems.
Who Is Most at Risk for Sports Betting Addiction?
Young adults, and in particular, young men, are the most likely to fall into compulsive gambling habits. Gambling falls into the category of compulsive when it becomes difficult to control the gambling even if the gambling is problematic to everyday life.
Though young men are most likely to fall into this destructive pattern, sports betting can get a grip on anyone’s life. That’s why it’s so important to recognize the potential dangers of sports betting as its popularity continues to grow.
Student-athletes are facing direct harassment
It’s not only gamblers who might face adverse outcomes from sports betting. The NCAA reports that harassment from those placing bets has become significant enough to launch national awareness campaigns.
Charlie Baker, the NCAA Commissioner, has publicly stated that student-athletes are being harassed via threats, and pressure tied directly to bets and prediction markets related to their performance.
It’s hard enough navigating college without the added pressure of bullying from “fans” who are upset because they lost money on a March Madness wager. And since student-athletes are typically trained to be mentally tough, they might be unwilling to seek help when they’re bullied.
Bullying is an unfortunate consequence of legalized sports betting, and not something that these young student-athletes should be reasonably expected to accept or endure.
The Impact of Sports Betting Is Real
March Madness might still look like a game, but the money behind it is changing behavior in ways we have only begun to understand. If you’re curious about the impact your sports betting is having on your financial life and potential to someday retire, speak with your financial adviser.
Gambling isn’t a viable financial plan, nor should it eat up the money that should go toward debt repayment or retirement.
When Sports Betting Stops Being Entertainment
But when gambling starts feeling less like entertainment and more like a compulsion, it’s a problem that should be addressed with a gambling counselor or therapist.
Groups like Gamblers Anonymous are a good starting point for those with concerns about their gambling habits, as is the National Problem Gambling Hotline at 1-800-522-4700.
Put the Game Back at the Center
From Cinderella stories to buzzer-beaters, the best moments in March Madness come from the game itself and the emotions it sparks. That thrill can stand on its own, without money shaping how the enJOYment of the game.
Published in Kiplinger
Thank you to Kiplinger for publishing:
Footnotes
https://www.ncaa.org/news/2025/3/18/media-center-don-t-be-a-loser-ncaa-launches-sports-betting-anti-harassment-video.aspx
https://mitsloan.mit.edu/sites/default/files/inline-files/Session3_Paper3_Gambling%20Away%20Stability.pdf
https://www.americangaming.org/americans-to-legally-wager-estimated-3-1-billion-on-march-madness/
https://www.americangaming.org/2024-commercial-gaming-revenue-reaches-71-9b-marking-fourth-straight-year-of-record-revenue/
https://psychcentral.com/addictions/four-phases-and-steps-of-gambling-addiction#what-is-it
