Americans Will Bet Estimated $16 Billion on Big Game

What happened

A record number of Americans will bet on the big game this weekend. According to the American Gaming Association (AGA), over 50 million adults will wager an estimated $16 billion. That's over 60% more than last year, which the AGA says is due to the expansion of legal sports betting.

"As interest in legal sports betting continues to expand, the gaming industry remains committed to responsibly delivering world class entertainment," said GA President and CEO Bill Miller, in a press release.

So what

It's been almost five years since the Supreme Court struck down a law that banned commercial betting in many states, and the industry has expanded dramatically since then. According to the Guardian, Americans bet over $125 billion in the first four years after the law changes -- more than they spent on pet food and veterinary care in a single year.

If you're considering a flutter on the game this weekend, it's important to be honest with yourself about why you're betting. It's one thing to do it for entertainment, it's another if you're trying to make the money you need to pay bills this month. You may not win. Only spend money you can afford to lose and make sure you understand what the odds are and how it all works.

Now what

Sure, the game is more exciting when you've got something riding on it. But when many Americans are taking on debt to pay for essentials it's worth thinking about what else you might do with that money. The AGA doesn't break down how much each person planned to bet, but it works out at an average of over $300 per person.

To put in perspective, let's say you invested $300 on the stock market and earned an APY of 8%. The S&P 500 has average returns of around 10% a year over the long-term so 8% is not unreasonable. The power of compound interest means that as your investments earn interest and the interest earns interest, it adds up over time.

Assuming you leave it alone, a $300 investment could be worth almost $650 in 10 years. And in 25 years, it could be worth over $2,000 -- likely a lot more than you'd earn on the game. There are no guarantees, but if you want to build wealth, there's a lot to be said for consistently investing small amounts in relatively safe assets. Over time, it's the way some people have become millionaires.

Buying stocks isn't for everyone. Especially if you don't have an emergency fund that will cover three to six months of living expenses. There's a lot of economic uncertainty right now. Having cash in a savings account to cushion you against the unexpected may not be as fun as a sports bet. Nonetheless, it might mean you sleep better at night and are better able to handle a job loss or other financial crisis.