Legal Sports Wagering in the US: A Growing Industry
As the NCAA basketball tournaments approach, the US sports betting industry is expanding rapidly. The American Gaming Association (AGA) estimates that Americans will legally bet around $3.3 billion on the NCAA Division I Women’s and Men’s Basketball Tournaments this year.
Meanwhile, the industry’s main trade group is warning about a new wave of prediction market advertising that could complicate oversight and weaken consumer protections. The AGA says that a growing presence from prediction market platforms is beginning to reshape the sports betting ads landscape.
Prediction Market Advertising Raises Compliance Concerns
Research compiled for the AGA shows that while traditional sportsbook marketing has cooled, promotion tied to prediction market platforms has surged across digital channels. Licensed online sportsbooks actually pulled back on advertising last year, with digital impressions tied to regulated operators falling nearly 14% in 2025.
However, prediction market platforms have dramatically increased their marketing footprint, quickly capturing a larger share of sports wagering-related ads seen by US consumers. This has produced a compliance gap, according to the AGA, with roughly 15% of sports betting ads viewed online in 2025 failing to include responsible gaming messages required by many state regulators.
Kalshi Leads the Way in Prediction Market Advertising
Kalshi has become a central player in the trend, with the platform ranking as the third-largest sports betting advertiser in the country based on digital impressions. The pace has accelerated even further in early 2026, with Kalshi generating roughly 5.2 billion impressions so far this year.
Additionally, marketing by licensed sportsbook operators continues to decline, with overall sports betting ad spending slipping 5% year over year. Television advertising has shrunk even more dramatically, with sports betting TV ad volume falling 9% year over year and being cut in half since 2021.
The Future of Sports Betting in the US
Despite the changes in the industry, the gaming industry continues to grow. AGA data shows that US commercial gaming revenue reached another record in 2025, reflecting continued expansion of legal betting markets nationwide.
The organization has been urging Congress to clarify how emerging prediction and crypto-based markets fit into existing gambling laws. As the industry continues to evolve, it’s essential to ensure that everyone offering sports bets in the US complies with state and tribal regulations, protecting consumers and maintaining the integrity of the games.
Finally, the AGA is emphasizing the importance of responsible gaming messaging in sports betting ads. With the NCAA basketball tournaments approaching, the industry must prioritize consumer protection and compliance to ensure a fair and enjoyable experience for all participants.
For example, the AGA has pointed to events like the Super Bowl, where it projected roughly $1.76 billion in legal wagers on Super Bowl LX, as evidence that regulated betting continues to surge. As the industry moves forward, it’s crucial to strike a balance between growth and regulation, ensuring that the benefits of sports betting are shared by all stakeholders.
In conclusion, the US sports betting industry is expanding rapidly, with the AGA estimating that Americans will legally bet around $3.3 billion on the NCAA Division I Women’s and Men’s Basketball Tournaments this year. However, the industry must prioritize consumer protection and compliance to ensure a fair and enjoyable experience for all participants.
Therefore, it’s essential to stay informed about the latest developments in the industry and to support responsible gaming practices. By doing so, we can ensure that the benefits of sports betting are shared by all stakeholders and that the industry continues to grow and thrive in a responsible and sustainable way.
