Can Sports Betting Stocks Cash in on March Madness?

Published 03/19/2025, 03:16 AM

The second-most popular sports betting event on the U.S. calendar starts this week when the NCAA men’s and women’s basketball tournaments tip off.

March Madness, as it is called, begins Thursday for the men and Friday for the women’s bracket, and ends with the men’s title game on April 7.

Over the next three weeks, bettors will wager $3.1 billion on the men’s and women’s college basketball tournaments. That’s up from $2.7 billion in 2024, according to the American Gaming Association (AGA).

While the Super Bowl is just one game, the total is twice as much as was wagered on the last Super Bowl. March Madness is considered the second biggest sports betting event in the U.S., behind the Super Bowl.

“March Madness is one of the most exciting times in American sports, with fans fired up for both the men’s and women’s NCAA tournaments,” AGA SVP of Strategic Communications Joe Maloney said. “As legal wagering expands across the U.S., more fans than ever have the opportunity to bet legally and responsibly.”

March Madness should provide a jolt for sports betting stocks, like DraftKings (NASDAQ:DKNG), Flutter (NYSE:FLUT), which owns FanDuel, Penn Entertainment (NASDAQ:PENN), which owns ESPN Bet, MGM (NYSE:MGM), and Caesars (NASDAQ:CZR).

Last year, during the first week of March Madness, DraftKings stock spiked 15%, while the others had smaller increases in price. Recently Yahoo’s Andy Mill asked DraftKings CEO Jason Robins about the tournament.

“We have a ton of new things and also a lot of real performance improvements that I think customers are going to notice. So I’m really excited about that. We have some great promotions planned, which we’ll be announcing in the coming week and excited about those as well,” Robins told Yahoo Sports.

Sports Betting Stocks Have Been on a Losing Streak

March Madness comes at an opportune time for sports betting stocks, which have been on a losing streak this year.

All five of the major online sports betting stocks are in the red. Penn is down 16%, Flutter and MGM have fallen 8%, and Caesars has dropped 17%. Only DraftKings stock has been able to tread water, down about 1% YTD. But since last March Madness, it has dropped 15%.

According to the Legal Sports Report, the handle and revenue for sports betting firms was down in January and February compared to the previous year. The hold rate was better in February of 2025 at 9.7%, compared to 7.9% last February.

In the men’s tournament, this year’s bracket is more unpredictable, which should bode well for sports books. Last year, UConn was the heavy favorite and they did not disappoint, winning easily. That meant a lor of bettors cashed in.

This year, No. 1 seed Duke is the betting favorite with +350 odds, according to BetMGM, along with Auburn at +325. But neither are considered the slam dunk that UConn was last year.

Duke has the most betting action on the eve of the tournament, with 13.9% of the tickets and 23.8% of the handle. Florida is next with 5.7% of the tickets but 15.7% of the handle, suggesting there are some big bets on Florida, according to BetMGM.

“Cooper Flagg’s health is a question mark, but we expect action to pour in on Duke if Flagg can play,” Magee said, reported Covers. “Along with Duke, Florida, and Michigan State are teams we don’t want to cut down the nets.”

Magee projects this to be the most-bet tournament in BetMGM’s history.

The tournament could provide a near-term lift for the sports betting stocks as it did last year. But there are a lot of variables at play for each over the longer term, so its best to research them individually.

Original Post

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.