Fun March Madness vs Unfun March Mayhem: Betting Buzzkill

A man appears dejected as he looks at his smartphone while sitting on his sofa.

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.

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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.

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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 digital sports betting ads seen by U.S. consumers in January and February 2026 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.

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.

State legalization, paired with societal acceptance and easy access through websites and mobile apps, has 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, particularly for financially vulnerable households.

According to the National Bureau of Economic Research, online sports betting is linked to lower savings, increased credit card debt and more overdrafts.

In particular, 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.

Young adults, especially 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, even if it 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 may 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 facing 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.

In an effort to address this growing problem, the NCAA has launched Don't Be a Loser, a sports betting anti-harassment video.

There's help for problem gambling

March Madness may still look like a game, but the money behind it is changing behavior in ways we're only beginning to understand. If you're curious about the impact your sports betting is having on your financial life and potential to 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. 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 Helpline at 1-800-MY-RESET.

You can get back to where you enjoy watching sports because they're exciting, and not because you have a wager on the game. "March Madness" should be fun and not "March Mayhem."

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Lawrence "Larry" Sprung, CFP®, CEPA®, is a husband, father, entrepreneur, award-winning adviser, author and mental health advocate. He is reshaping personal finance by fostering JOYful conversations around money. Larry founded Mitlin Financial, Inc., in 2004 with a focus on prioritizing the families they serve. The Mitlin name illustrates their culture as the firm is named in memory of Larry's wife's grandfather, Mitchell, and his mother, Linda.