Super Bowl Betting Takes on All-Time Highs

Might this be the third win for the Kansas City Chiefs? Or perhaps Philadelphia’s Eagles will take the city into a nine-week parade like in 2018. Many have placed their bets regardless of dressing head to toe in red or green. 

This weekend, the average notable amount of money will be spent on Super Bowl parties, food, and paraphernalia. What’s different is the millions, if not billions of dollars, that will be spent on bets. According to Forbes, sports gamblers are “expected to wager a record $16 billion on this year’s Super Bowl.” Let’s put these numbers in perspective. 

How Much Money Is Spent on the Super Bowl?

The NFL doesn’t disclose how much they make on partnerships and the event itself. However, IEG estimated that they earn close to $1.8 billion. Approximately 100,000 tickets ranging from $950 to $6,200 were bought, summing to roughly $66.5 million (not including luxury boxes which increase the amount).

Not everyone will make it to the State Farm Stadium in Arizona, but that won’t stop most Americans from watching the big game. Fox, CBS, and NBC pay approximately $3 billion to broadcast the NFL game; each year, one is chosen as the leading broadcaster. This year Fox holds the broadcasting rights. The National Retail Federation (NRF) and Statista projections expect Americans to clock in over $16.5 billion this year in consumer spending alone! 

Super Bowl Betting in Perspective

Consumer spending does not include betting expectations, meaning that on top of the $16.5 billion, Americans will place a whopping estimated $16 billion in bets. Keep in mind consumer spending is projected for an estimated 315 million people. Meanwhile, the bet projection accounts for 1 in 5 adults (approximately 50 million individuals).  

Bets on the Eagles vs. Chiefs 2023 Super Bowl game will almost double last year’s $7.6 billion! Interestingly, this is also the first time the event is held in a state where sports betting is legal. 

Fact vs. Fiction: Betting and the Stock Market

Not only do people bet on the big winner, but many also think there is a correlation between who wins the game and stock market performance. We are here to say: this is fiction. You’re free to bet on this year’s 2023 Super Bowl winner, but don’t risk making decisions on stock performance based on the sport’s score. 

According to Investopedia, the Super Bowl Indicator “suggests that the NFL’s annual championship matchup forecasts the current year’s stock market performance […] According to the theory, if a team from the National Football Conference (NFC) wins the Super Bowl, the markets will rise, but a victory by the representative of the American Football Conference (AFC) foretells a year of market declines.”

For the past 15 years, these predictions have been wrong 9 times. Even though it’s claimed that the success rate of the Super Bowl indicator is 73%, there is no evidence that there is really any correlation between the winning team and the U.S. stock market. 

What Will You Do With The Money Earned From the Bet?

The bottom line is, betting this year will surpass any Super Bowl-inspired spending. If you place your bets, do so for the fun of it, but avoid assuming you can predict stock performance. Additionally, remember that betting is not a sound long-term financial strategy to grow wealth. When it comes to enjoying sports, you are the expert. Let’s leave the money-related predictions of the game to predicting if we’ll see streets full of green or red jerseys rather than acting impulsively trying to beat the market.