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According to a study conducted by a Chicago executive outplacement firm, it is estimated that this year’s March Madness tournament will result in approximately $692 million in lost productivity in Illinois. The increase in Illinois sports betting is thought to be a significant factor contributing to this trend.
Whether you choose to trust the numbers or not, it can be enjoyable to examine them.
According to Challenger, Gray & Christmas, Inc., this year’s NCAA men’s basketball tournament is projected to result in up to $17.3 billion in lost productivity for US employers. This estimate is approximately $1 billion higher than last year and marks the firm’s highest estimation for the tournament to date.
Lost productivity in Illinois during March Madness is about $110 per person
How were the Illinois numbers obtained?
In 2022, an estimated 158 million Americans were employed, resulting in a national average of approximately $109 lost in productivity per working individual during the tournament.
The most recent employment data for Illinois indicates that approximately 6.2 million individuals are currently employed in the state, representing 4% of the national total. Based on these figures, Illinois is estimated to account for around $692 million of lost productivity during March Madness.
Please note that this equates to approximately $110 in lost productivity per employee.
There is no way to measure the positive impact on employee well-being. Some believe that incorporating a fun distraction during a typically dull month can improve morale and foster team unity. For example, an office bracket competition solely for enjoyment and boasting rights could achieve this.
Andrew Challenger, workplace expert and senior VP of global outplacement and business at Challenger, Gray & Christmas, Inc., stated that March Madness provides a fantastic opportunity for teams to bond, especially in the context of fully remote and hybrid work environments.
Organizing activities centered on March Madness, such as watching games or participating in bracket competitions with rewards for the champion, adds excitement to the workplace for both on-site and virtual teams.
Sports betting in Illinois was up 39% in 2022
Nonetheless, it is undeniable that legal sports betting is increasing in popularity in Illinois.
In 2022, Illinois saw a sports betting handle of nearly $9.8 billion, representing a 39% increase from the total handle of just over $7 billion in 2021.
Illinois has achieved its fourth consecutive month with a billion-dollar handle, with the most recent month being January.
We are still awaiting the figures for February and March. In February, we saw the Super Bowl, the largest single sports betting event in the nation. March will feature the NCAA men’s basketball tournament.
In March 2022, Illinois experienced its first ever betting handle exceeding $1 billion, with March Madness playing a significant role in this milestone. Sports bettors in Illinois wagered over $286 million on the 2022 men’s and women’s tournaments combined.
This suggests that betting on this year’s tournaments in Illinois likely played a significant role in the decrease in productivity.
AGA predicts March Madness betting will be up 51% this year
The American Gaming Association predicted that approximately 68 million Americans were expected to place bets on the game, a 51% increase from the 45 million who did so in 2022.
An AGA survey found:
- 31 million Americans intended to place bets online, through a sportsbook, or with a bookie.
- 21.5 million people are planning to casually bet with friends.
- 56 million people were expected to complete a bracket.
- The tournaments are expected to attract approximately $15.5 billion in bets, slightly below the $16 billion wagered on this year’s Super Bowl by Americans.
With those figures in mind, it is clear that betting on March Madness in Illinois will significantly contribute to the $692 million decrease in productivity.
