The American Gaming Association (AGA) estimates that Americans will legally wager approximately $3.3 billion on this year's NCAA Division I men's and women's basketball tournaments. This figure marks an increase from last year's projected $3.1 billion and reflects a remarkable 54% rise in betting over the last three years.
Bill Miller, the AGA's president and CEO, stated, “March Madness is the pinnacle of the college basketball season, and fans are excited for a month filled with tournament action.” He emphasized that fans are increasingly participating in legal, state- and tribal-regulated sports betting during this major event on the sports calendar.
The NCAA tournaments, which feature over 100 games for both men and women over a span of three weeks, have become one of the most significant betting events in the U.S. The AGA's estimate does not account for prediction market trading, which could potentially elevate total wagering figures even further.
The surge in betting activity is attributed to the ongoing expansion of legal sports betting markets at the state and tribal levels, along with growing consumer confidence in these regulated options.
However, the AGA raised alarms regarding the increasing visibility of prediction market platforms in sports betting advertisements. Data from Sensor Tower, compiled by the AGA, revealed that while digital ad impressions for online sportsbooks dropped nearly 14% in 2025, ads related to prediction markets saw a significant increase.
Last year, nearly 15% of digital sports betting advertisements viewed by consumers failed to meet state-mandated responsible gaming messaging standards, primarily because they originated from prediction market platforms.
Kalshi has emerged as a prominent player in this advertising space, ranking as the third-largest sports betting advertiser by digital impressions in 2025. In the first two months of 2026, it became the most visible sports betting brand, with its ads reaching consumers approximately 5.2 billion times, compared to 2.9 billion impressions for FanDuel, the next most frequent advertiser.
Despite the increase in betting volumes, overall sportsbook advertising activity has declined, according to a study commissioned by the AGA. Total spending on sports betting advertising fell by 5% year-over-year, with ad volume across all channels decreasing by 1% and remaining 27% below its peak in 2021.
Television advertising for sports betting has also seen a significant drop, with TV ad volume declining by 9% year-over-year and plummeting 50% since 2021.
In 2025, sports betting advertising accounted for a modest share of total U.S. television advertising, representing about 0.9% of the total spend, compared to 1.5% for alcohol advertising.
In terms of ad volume, sports betting made up 0.3% of TV advertising, while alcohol accounted for 0.6% and pharmaceuticals represented 13.9%. For every sports betting commercial aired on television in 2025, there were 39 pharmaceutical ads broadcast.
“Confidence in your wager—and in the integrity of the games—begins with a fair and compliant betting market,” Miller remarked. “This underscores the importance of compliance with state and tribal regulations for all entities offering sports bets in the U.S., ensuring consumer protection.”
At the same time, the expansion of legal sports betting markets continues to bolster wagering growth. Missouri, which initiated legal online and retail sports betting in December as the 31st state to do so, reported nearly $920 million in wagers within its first two months.
Prediction markets are anticipated to play a more significant role in this year's tournaments, offering products akin to traditional sportsbook offerings, including moneyline contracts, spreads, totals, parlays, and proposition-style bets.