March Madness is in town, as Buffalo hosts six games of the NCAA men’s basketball tournament beginning with South Florida facing Louisville Thursday afternoon.
There will be action on the court and action in sportsbooks, with $3.3 billion expected to be wagered on the tournament. But, behind the buzzer-beaters and parlays, there’s growing concern about the impact on fans’ finances and mental health.
"Bet responsibly" is the word of advice when it comes to wagering on sports. And for the most part, Americans through state-regulated betting apps do so.
“But about 5 to 7 percent of [bettors] are what you would call problem gamblers, people who bet more than they have, people who get themselves into financial trouble," said Bharat Ramamurti, former deputy director of the White House's National Economic Council from 2021-2023. "And the thing is that about 50 percent of the revenue that these companies make come from that 5 percent.”
Ramamurti is the co-author of a new policy paper on the rise of online sports betting use and its correlations with deepening financial troubles nationwide, particularly among men ages 18-49. Half of American men in that bracket have a sports betting account, according to Siena Research.
“There's a really strong body of academic research right now that when online sports betting is legalized in the state, you see an increase in bankruptcy filings in that state," he said. "You see negative effects on people's credit scores. You see larger credit card debt on their statements.”
In 2025, New Yorkers wagered a combined $26.3 billion using betting apps, and lost more than $2.5 billion. Sportsbooks are only increasing their advertising, enticements, ways to bet and what to bet on. Ramamurti argues that regulations need to keep up, similar to those around payday loans and mortgages.
"In certain states you can bet on, if you're watching baseball, is the next pitch going to be a ball or a strike? Or if you're watching football, is the next play going to be a run or a pass? And you are able to make your bet and get the resolution of that bet, in some cases, within 10 seconds, and then the next bet comes up," Ramamurti said. "That kind of very quick turn betting has been associated with very serious financial harms."
New York does allow those kinds of bets, called live betting or in-game wagering. A bill introduced in 2025 by Democratic Assemblymember Linda Rosenthal would have prohibited sports books from offering such wagers. It failed, however Rosenthal has re-introduced the bill for 2026.
The state also has strict guidelines around betting on collegiate sports. Placing bets on NCAA teams located within New York is prohibited. But, the 2021 law allows wagering for collegiate tournaments played in the state, like March Madness.
Ramamurti said major sports books like FanDuel and DraftKings employ "VIP programs" that utilize algorithms to entice users who are losing, to keep betting. The companies will offer up vacations, tickets to live events and betting credits to such bettors.
"I do think it's problematic that so much of the business model of these companies is based on extracting maximum value from people who, frankly, are getting themselves into financial trouble," he said.
The New York State Gaming Commission advises fans to use sports betting apps responsibly. They recommend setting time and money limits, don’t rely on it as a source of income and avoid betting to escape mental health issues. For free help, you can call or text the New York State HOPE Line at 1-877-8-HOPENY.
