Americans Will Bet $9.2 Billion on March Madness in 2016

The latest estimate from the American Gaming Association (AGA)on March Madness betting revenue, an organization that advocates for the casino industry in the United States. This number comes on the heels of the AGA’s prior estimate that some $4.2 billion was wagered on the last Super Bowl. In both cases, illegal gambling accounts for an astounding 97% of the total.

This year, the AGA is expecting to see about $262 million in total wagers placed via legal means (such as Las Vegas sportsbooks). The other $9 billion in wagers are placed via offshore betting sites, street bookies and informal pools. These figures come from the AGA’s latest website that seeks to change lawmakers’ minds about real money sports betting.

AGA argues that “it’s time to revisit the federal prohibition on sports betting” and posits that federal law prohibiting sports betting has failed. Furthermore, the prohibition has fueled a black market for sports gambling that is completely unregulated and untaxed.

The AGA argues that legalization should be implemented with four key objectives:

• Implement strict regulations to protect the integrity of sports and sports betting
• Include rigorous consumer protections
• Tax sports betting revenues to benefit local communities
• Provide robust tools for law enforcement

AGA President and CEO Geoff Freeman said in a press release that “Americans’ passion for betting fuels the unmatched popularity of March Madness. Betting increasingly drives sports fans – and even casual observers – to invest in the tournament, offering further evidence that sports betting is the new national pastime. It’s time for a fresh, rational approach to sports betting that reflects this reality.”

That same press release also notes that Americans will complete more brackets this year than will likely vote for any Presidential candidate. The AGA estimates that Americans will fill out more than 70 million March Madness brackets in 2016. The most votes a Presidential candidate has ever received in an election was in 2008 when Barack Obama received 69 million votes.

Sadly, the AGA purposely takes no position on online sports betting – likely because members fall on both sides of the issue. Sheldon Adelson, for example, has led the charge to implement the Restoration of America’s Wire Act (RAWA) in an effort to clamp down on all forms of online gambling. Meanwhile, other members have voiced their full-throated support of legalizing sports betting across the US.

Even so, the AGA makes good points that could just as easily be applied to online betting. Our insistence on banning online gambling has done little to stem the tide. Offshore betting sites continue to thrive to this day and account for the majority of illegal bets placed every year. Bringing online betting under the regulatory umbrella would provide much-needed consumer protections and new tax revenues.

Interesting Facts and Figures

As impressive as that $9.2 billion figure is, it is only the tip of the iceberg. The AGA estimated last year that Americans placed nearly $149 billion in illegal sports bets. Given those massive numbers, it is hard to argue that prohibition has come anywhere near achieving its goals.