November 2022 Virginia Sports Bets Yield Record $7.8M In Taxes

Written By Russ Mitchell on January 4, 2023
November 2022 Virginia Sports Bets

November 2022 Virginia sports bets produced one sure-fire result — the state’s general fund won big again.

Sportsbooks generated a record $7.78 million in taxes for November, according to the latest Virginia Lottery report released on Friday. The tax amount exceeds the previous record of $7.3 million collected in September.

Credit policy changes for the record tax haul. After a one-year grace period, Virginia now taxes free sports bets and promo offers. The state used to out on revenue when companies use generous offers to attract first-time customers. But, lawmakers closed the tax loophole as part of the 2022 state budget. Virginia taxes sports betting profits at a 15% rate.

From November’s taxes on legal bets in Virginia:

  • About $7.6 million went into the general fund.
  • $194,566 went toward problem gambling.

The Virginia Department of Behavioral Health gets 2.5% of gaming profits for the Problem Gambling Treatment and Support Fund.

November 2022 Virginia sports bets were flat, but still flirted with record levels

Customers placed $518.8 million in sports bets at the 13 Virginia sportsbooks in November.

The total is up 28.9% from the same month a year ago.

November’s new numbers are about 1.7% off the all-time mark, however. That came in October 2022, when sportsbooks took in a single-month record of $528 million.

The Virginia Lottery tells us eight of the state’s 13 sportsbooks turned in positive numbers once customer wins and authorized state deductions were factored in. A month ago, seven of the 13 sportsbooks reported a positive adjusted gross revenue.

The state allowed sportsbooks to claim about $3.9 million in deductions. Virginia’s newer sportsbooks were still able to claim $817,857 in bonuses and promo offers to customers.

Virginia sportsbooks won at higher levels

The house had a better November compared to October. Companies reported an 11.1% hold percentage in the just-released November numbers compared to 9.7% in October.

So, even though betting dollars (handle) was down just under 1.7% from October, adjusted gross revenue rose from $45.5 million to $52.8 million in the most recent totals.

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Russ Mitchell

Russ Mitchell covered news and sports in Iowa since 1997, including 11 years as managing editor for one of the most decorated community newspapers in the state. He joined PlayIA as a lead writer and managing editor in 2021. He anxious to explore the growing Virginia gaming industry.

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