Important points
- Legal wagers on this year's NCAA basketball tournament, March Madness, are expected to reach $2.7 billion, according to the American Gaming Association.
- The availability of online gambling and the expansion of the legalization of sports betting across states has increased the number and size of wagers on this annual sporting event.
- Growing interest in women's college basketball is also driving growth, with betting on women's college basketball increasing dramatically year on year.
- Sports betting companies also stand to benefit from the excitement surrounding the NCAA Tournament.
The National Collegiate Athletic Association (NCAA) 2024 Division I college basketball tournament, known as March Madness, kicked off this week, sending fans and sports betting retailers into a frenzy. The event could also benefit the stock prices of some companies in the sports betting industry.
According to the American Gaming Association (AGA), bettors are expected to legally bet up to $2.72 billion on March Madness this year. This figure does not appear to include bets made by friends, family, or office bets, which were counted as part of the AGA's previous research into March Madness betting.
“It wasn't that long ago that if you wanted to bet, you had to go to a sportsbook at a Nevada casino or participate in a more casual bet with friends,” said AGA Vice President of Research. says Dave Forman.He said CBS News In an interview. ”[Online betting] It has driven many new people into its legal market. ”
The number of bettors across sports has steadily increased in recent years due to loosening of regulatory laws in 38 states and the District of Columbia.
Similar sums for Super Bowl bets
One market research firm reports that 75% of fans will bet on March Madness for the first time in 2023.
Last year, the AGA predicted 68 million Americans would bet up to $15.5 billion on the tournament, which features more than 100 matches between men's and women's teams over three weeks. Of those, 31 million planned to place a sports bet through online betting, a traditional sportsbook, or a bookmaker, and 21.5 million planned to “casually bet with friends.”
For comparison, 50 million adults bet $16 billion on last year's NFL Super Bowl, one of the most expensive games in U.S. sports. Fittingly, the Super Bowl will be held in Las Vegas this year, with that number jumping to 68 million bettors who bet $23.1 billion, according to sports network ESPN.
Betting on women's matches almost triples
One of the drivers for more bets on March Madness is the increased interest in women's college basketball.
The number of bets on women's college basketball has nearly tripled this season compared to last year, according to Caesars Sportsbook, due to talented players such as the University of Iowa's Caitlin Clark and Louisiana State's Angel Reese. That's what it means.
With the NCAA basketball tournament about to begin, Jefferies stock analysts said in a March 13 research note that “investor interest in the game remains focused on the fast-growing U.S. market as states continue to legalize.” “Promotions and the path to profitability are still under discussion,” he said. .
Bank of America Securities analysts highlighted DraftKings, Inc. (DKNG) in a research note in mid-February. BetMGM, owned by MGM Resorts International (MGM). A notable game company is PENN Entertainment Inc. (PENN), which operates ESPNBet.
