Casino Watch Focus has reported on the ongoing problems that come with the NCAA March Madness tournament each year. Millions is lost to employers through a decline in work place productivity and people continue to gamble away money at unprecedented rates. Most of this gambling is illegal and despite the recent legalization of sports betting by the Supreme Court, that trend will continue. An online source explains:
America has seen a boom in legalized sports betting over the past year, and March Madness betting will highlight that. Nevada certainly remains the top dog, but New Jersey has come on strong. Yet illegal offshore sportsbooks continue to thrive. The American Gaming Association (AGA) set out to determine how much legal versus illegal wagering will take place with *March Madness *betting.
Over the first week of March, the AGA utilized Morning Consult to conduct an online survey among more than 11,000 adults. The study found that some 47 million people will wager on the NCAA men’s basketball tournament, which began Tuesday with the First Four. The AGA found that $8.5 billion will be bet during the tourney, shared by legal and illegal sportsbooks. Legal sports betting continues to expand, but this report found that offshore operations and local bookies will still attract more action than regulated sportsbooks.
The general legality of such gambling continues to be a prominent issue this time of year as many people view office pools as harmless fun. Unfortunately, it’s anything but and its almost always illegal gambling. ESPN explains:
“Generally, if the office pool charges a fee for entering the pool and awards prizes to the winner(s), then there is a serious question as to its legality. Some states exempt small pools from their gambling laws and regulations,” said Washington, D.C.-based attorney Steven Eichorn of Ifrah Law.
Sports betting is currently legal in only a handful of states, with Nevada the only state permitted to offer single-game wagering, the most popular form. The Nevada Gaming Control Board does not track the amount bet on the NCAA tournament separately, and combines the NBA and college basketball into one “basketball” category on its monthly revenue reports. The spike in action from March Madness is easy to see, though.
In terms of cost to employers, the Charlotte Observer points to a Chicago-based study which says as much as $1.7 billion will be lost by employers in productivity, which breaks down to $109 million lost for every 10 minutes spent following the tournament. They believe there will be over 37 million workers participating in pools with 1.5 million watching games and results online from their desks. ESPN recently quantify the financial impact of just the gambling:
On the low end, the FBI estimated in 2013 that $2.6 billion was bet illegally on the tournament. On the high end, veteran bookmakers estimate the number to be anywhere from $12 billion to $26 billion. Friendly bracket pools are everywhere, with most everyone betting on the NCAA tournament in some form. But there are bets, and then there are bets. You don’t get to $26 billion with $20-per-sheet office pools.
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