March Madness 2026: AI and Prediction Markets Replace the Office Pool

If March Madness is America’s annual reminder that probability is a prankster, the Final Four is when the prank starts charging subscription fees.

This Weekender finds otherwise sensible adults becoming pop-up quant traders, building models in spreadsheets, consulting mascots as if they were macro indicators, and asking chatbots to pick between a 12-seed and a 5-seed with unearned certainty.

A Look at the Mania (and the Money)

The tournament’s popularity is measurable in clicks and collective lost productivity. ESPN’s Men’s Tournament Challenge alone logged 24.4 million completed brackets in 2025, equating to more than 1.1 billion individual picks, with peak traffic hitting 709 brackets per second.

The business behind the madness is even louder. In the NCAA’s most recently audited fiscal year (ended Aug. 31, 2024), the association reported $1.376 billion in total revenue, including $948.4 million in “television and marketing rights fees” and $263.2 million tied to championships and the National Invitation Tournament (NIT).

AI, Betting and Prediction Markets: The Good, the Sketchy and the Truly Weird

“Legit” artificial intelligence is the kind that doesn’t claim it can see the future; it just gives you better tools to pretend you can. ESPN’s Tournament Challenge now offers analytics-driven autofill, like Smart Bracket, powered by ESPN Analytics. This is sports analytics as a consumer product. The same edge once reserved for oddsmakers is now a user interface feature.

Then there’s generative AI, the chatty intern who will fill out your bracket on demand, even if it occasionally hallucinates confidence. In 2025, outlets like MarketWatch and Sports Business Journal ran an experiment where they asked models like ChatGPT (and rivals) for a bracket. The bots tended to like favorites and came up with upsets when asked. These models can summarize conventional wisdom at scale (which, to be fair, is also how half your office pool operates).

For the “AI is actually putting money on the line” moment, the Associated Press tracked a $1 million showdown between a pro gambler and 4C Predictions’ AI-generated bracket, with the wager coming down to a Final Four game. It turned bracketology into a head-to-head between human intuition and machine pattern recognition, basically, the digital economy’s favorite plotline, played out in sneakers.

Now the “not so legit” side: March Madness is also phishing season. In 2025, cybersecurity experts warned that attackers were using bracket- and betting-themed lures to harvest credentials and payment details. CBS News similarly warned that the ease of online wagering can make casual fans and families prime scam targets. The same frictionless rails that make modern payments feel magical also make fraud feel inevitable, especially when hype is doing the marketing.

And finally, there are prediction markets, where the pitch is “sportsbook, but make it derivatives.” Barron’s reported last year that Kalshi saw $208 million in March Madness-related trading during the opening rounds in 2025. Reuters reported Tuesday (March 3) that the Commodity Futures Trading Commission is moving toward formal rulemaking for prediction markets, an attempt to define what belongs in finance versus gambling. It’s regulation-by-genre, as the product can look like a bet, be framed as a trade, and still end up in the same dopamine economy.

It gets weirder. This year, it was reported that the NCAA asked Kalshi to stop using “March Madness” branding, an intellectual-property skirmish that reads like a cease-and-desist letter to a financial exchange for using a famous ticker. It underlines how valuable the tournament’s brand is, and how badly new platforms want to borrow its glow.

If you’d rather keep your weirdness old-school, sportsbooks and betting sites still offer micro-markets that feel like they were invented during an espresso binge. VSiN highlighted a tournament prop as blunt as it is chaotic: “A 13 seed will win a game.” It also touted a strategy-style wager, betting first-half unders across the First Four and first round, banking on historically slow starts. These aren’t who-wins-it-all bets. They’re attention-slicing bets, turning the tournament into an everything-market of tiny outcomes.

(As always, bet legally and responsibly.)

Machine-Made Madness

So yes, AI is playing in the Final Four, sometimes as your bracket co-pilot, sometimes as your overconfident oracle, and increasingly as the machinery behind new ways to wager, trade and scam.

The real madness isn’t that one upset will ruin your bracket. It’s that the same tournament can be a national pastime, a billion-dollar media engine, an AI demo and a quasi-derivatives marketplace, often in the same app session.

For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.