The lavish show, based around her Hard Candy album, featured a Ukrainian gypsy band, a vintage racing car and a 'virtual' duet with Justin Timberlake.
It also became the eighth highest-grossing tour of all time in North America, Pollstar said. Celine Dion's gigs were 2008's second-biggest earner, taking $236.6m.
The Canadian balladeer's Taking Chances show visited 24 countries - compared to Madonna's 17 and marked her first world tour for eight years.
Both singers' concerts were directed by choreographer Jamie King, who was also responsible for the Spice Girls' reunion tour.
Madonna also broke her own record for the biggest selling tour by a solo artist, topping 2006's Confessions concerts, which took $193.7m.
Check out the top 10 tours of 2008 after the jump!
#1 - Madonna - £193m
#2 - Celine Dion - £162m
#3 - Bon Jovi - £121m
#4 - Bruce Springsteen and the E Street Band - £114m
#5 - The Police - £83m
#6 - Neil Diamond - £65m
#7 - Eagles - £61m
#8 - Andre Rieu - £53m
#9 - Kenny Chesney - £49.7m
#10 - Coldplay - £49.5m

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