March Madness Betting Expected to Generate $3.3 Billion in Wagers

According to a statement from the American Gaming Association, March Madness is expected to generate $3.3 billion in wagers, not including potential boosts from prediction markets.

Ziv Chen

Last Updated: March 18, 2026 7:19 AM EDT • 2 minute read

Pictured: Detailed view of the March Madness logo as we look at the $3 billion expected to be generated by the event. Photo by Rick Osentoski-Imagn Images

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Americans are expected to legally wager a record $3.3 billion on the 2026 men’s and women’s NCAA basketball tournaments, according to new data from the American Gaming Association (AGA). This would be a 54% increase over the past three years and is nearly double the betting handle generated by February’s Super Bowl.

According to the AGA, the growth is due to increasing consumer confidence in regulated sports wagering markets across the US, such as you find at the best sports betting sites. Speaking about the sports betting boom, the President and CEO of the AGA, Bill Miller, highlighted the role of the March Madness tournament in driving fan engagement.

“March Madness is the highlight of the college basketball season and fans are gearing up for a month of tournament action. Fans continue to engage with legal, state- and tribal-regulated sports betting in record numbers during one of the biggest moments on the sports calendar,” Miller said.

However, the $3.3 billion estimate only covers wagers placed on state-licensed sportsbooks. It does not include prediction markets like Kalshi and Polymarket, which are regulated by the Commodity Futures Trading Commission (CFTC), not state gaming regulators.

These platforms allow users to trade contracts on the outcomes of events, including sports competitions, in markets that function similarly to betting odds. According to gaming data firm H2, around $150 million could be wagered on the NCAA through prediction sites.

However, prediction market apps have drawn scrutiny from several state regulators, who have issued cease-and-desist orders as trading volumes have expanded during major sporting events. Critics say they create a parallel wagering market without safeguards.

NCAA challenges prediction markets on use of “March Madness”

March Madness has also become a controversial brand for prediction markets. The annual tournament has become one of the busiest markets for prediction market operators, with Kalshi reporting that users traded $2.27 billion across men’s college basketball games in February.

In terms of other sports, college basketball has far surpassed Super Bowl LX, which saw $1.8 billion in trading volume, as well as the NBA, which profited $1.7 billion in wagers.

But while operators continue to profit from collegiate basketball, the NCAA has repeatedly scrutinized platforms for using the term ‘March Madness’ in their sports event contracts.

In recent months, the NCAA has requested that Kalshi remove the phrase from its site. This follows last November’s request for Kalshi to stop using the phrase ‘outcome verified from NCAA’. The NCAA also maintains strict rules prohibiting athletes, coaches, and athletic department staff from trading on prediction markets, which it classifies as a violation of its sports betting policies.

But while the NCAA remains a major critic of prediction markets, some pro leagues, including the NHL and MLS, have made tentative deals with the likes of Kalshi and Polymarket, underscoring the uncertainty around their impact on sports.

Written by:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.