Study Finds Illegal Sportsbooks Dominated NCAA March Madness Betting

Persistent Dominance of Offshore Sportsbooks

A recent study conducted by the Campaign for Fairer Gambling (CFG) and data analytics firm YieldSec revealed that illegal online sports betting platforms captured over 61% of the total betting handle on the 2024 men’s and women’s NCAA tournaments.

These unlicensed operators facilitated an estimated $4.3 billion in bets, overshadowing the $2.7 billion handled by regulated sportsbooks.

Regulatory Challenges and Consumer Risks

The survey also identified at least 378 online sportsbooks that actively targeted U.S. consumers during the tournament period, with over 650 affiliate websites promoting these platforms.

The widespread use of social media for advertising by these offshore bookies has compounded the issue, with approximately 80% of March Madness video content on platforms like X, Facebook, TikTok, and Instagram linked to illegal operators.

Derek Webb, founder of CFG and a gaming industry veteran, expressed concerns about the elevated risks associated with the widespread expansion of online sports betting. “It’s high time for U.S. leadership to spearhead a unified solution to this pervasive issue,” remarks Webb.

Legal and Social Implications

In addition to posing consumer risks, illegal sportsbooks offer no tax benefits and often neglect responsible gambling practices. This was highlighted by the recent scandal involving Shohei Ohtani’s former interpreter, who allegedly stole over $16 million to gamble with an illegal bookie, leading to substantial financial losses.

The U.S. Department of Justice has recognized the seriousness of illegal online gambling and has pledged to prioritize combating these activities.

However, the ongoing prevalence of illegal betting platforms during significant sporting events like March Madness suggests that more effective measures are needed to curb their influence.