More than 50 million Americans are expected to bet an estimated $16 billion on Super Bowl LVII, according to a new report from the American Gaming Association (AGA).

The AGA’s projections for Sunday’s matchup anticipate the total betting handle to nearly double last year’s estimation, with a 61% year-over-year increase.

“Every year, the Super Bowl serves to highlight the benefits of legal sports betting: bettors are transitioning to the protections of the regulated market, leagues and sports media are seeing increased engagement, and legal operators are driving needed tax revenue to states across the country,” AGA President and CEO Bill Miller stated in the release.

The AGA, which lobbies on behalf of gambling legalization, releases annual projections prior to the Super Bowl each year. This year’s report showed increases in the total amount bet and the number of bettors as well as increased betting on both the legal and non-legal sides of the industry. Approximately 30 million Americans will make a traditional sports bet either online, at a retail sportsbook, or through a bookie, according to AGA findings.

The impact of legalization

The Super Bowl comes as several sportsbooks battle for market share in newly operational states like Massachusetts, Maryland, and Ohio.

Sports betting is currently legal in 33 states and Washington, D.C., up from 30 states and the nation’s capital last year. Despite a recent failed attempt to legalize sports betting in California that weighed on gambling stocks last year, increased legalization could still assist the growth in gambling on this year’s Super Bowl.

The AGA’s $16 billion estimation is a massive number for the gambling industry. The number is roughly in line with New York’s online sports betting handle for all of 2022 and comes after a tumultuous year for many publicly-traded casino companies with heavy sportsbook exposure.

The $16 billion number from the AGA is simply an estimate, however. Last year, the AGA projected $7.61 billion in Super Bowl betting via both legal and illegal means. A graph tweeted out by the organization on Tuesday, though, revealed bettors placed $950 million in legal wagers for last year’s Super Bowl.

Legal sportsbooks normally don’t take home a large portion of their handle, either. At its 2022 Investor Day, industry leader FanDuel reported a 10% gross margin win. That 10% is then multiplied by the company's handle to provide the gross gaming revenue, or the actual amount eventually taxed by states.

Wall Street analysts and industry executives have stressed that the Super Bowl is a key acquisition moment for the industry.

Last year’s Super Bowl proved to be highly promotional, with multiple sportsbooks battling for market share in New York. DraftKings (DKNG) and FanDuel each offered five-dollar bets to win $280 bet promotions while Caesars (CZR) offered four-figure risk-free bets.

The promotions led to a robust first few months in New York for Caesars, but the Super Bowl boost didn’t last for long in the state. As Caesars' marketing spend teetered back last year, FanDuel and DraftKings overtook market share leadership from Caesars.

Shares of DraftKings, MGM Resorts (MGM), Caesars Entertainment, and Penn Entertainment (PENN) all closed 2022 off more than 20%.

Many of those stocks have rallied to start the year, with DraftKings up nearly 50%.

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This post has been updated.

Josh is a reporter and producer for Yahoo Finance.

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