Sports fans are expected to bet $3.1 billion legally on this year’s NCAA men’s basketball tournament. This estimate comes from the American Gaming Association.
Cinderella teams, buzzer-beaters, and double-overtime games make the tournament exciting. You can bet on it through your office bracket or a mobile app like 22Bet Bangladesh. It’s a fun chance to win some extra cash. Financial experts say one big mistake can ruin your finances. Many bettors don’t know they’re doing it.
The biggest mistake? Not setting a budget for sports betting, says Jonathan Greeson, a certified financial planner. Betting apps can make money feel like digital credits. Because of this, it’s easy to lose track of your spending. Yet, losses are very real and should be treated like any other expense.
Placing bets on March Madness or your favorite teams at 22Bet Bangladesh is fun. But remember, financial discipline is crucial. It keeps betting fun and protects you from losing money. “Betting expenses should be part of your entertainment budget,” Greeson advises.
You might expect to win, but the reality is that you will likely lose some or all your bets. Scott Baker, a finance professor at Kellogg School of Management, highlights this issue.
Without a budget, your betting losses can spiral out of control. Betting differs from dining out or going to the movies. In those activities, spending is usually limited. But with betting, there’s no set cap. Sports bettors might try to “chase their losses when things go bad.” They want to win back the money they lost before.
Greeson cautions that chasing losses without a clear budget can lead to reckless gambling decisions. “It’s a perfect recipe for addiction.”
Experts agree: don’t compare sports betting to investing in stocks or bonds. While both entail risk, the outcomes couldn’t be more different.
“The average sports bet is going to lose around 10% or more of your bet,” Baker says. “Think about it: what if the government-backed savings accounts that guaranteed a 10% loss? That’s how uncontrolled gambling can feel,” he notes.
Set a Betting Budget
Greeson recommends setting a clear spending limit before you bet. This can help keep gambling from hurting your finances. Make sure to stick to it.
Just like investing, we should only wager what we can comfortably afford to lose,” he explains.
For example, you might start the NCAA tournament by adding $200 to your betting account. As long as you still have money in that account, bet away. But if your account goes to zero—even during the Sweet 16—you must be willing to walk away.
Sports betting is fun, not a method to make money or boost your finances. If your bet wins, great. If not, you’ll have earmarked the money you gambled as entertainment, even if it doesn’t work out.
Above all else, Greeson says it’s important to quit if sports betting ever stops feeling fun. “That might be the best advice I have ever received,” he says.