Bettors wagered nearly $59 million at licensed sportsbooks during the first 11 days of legal sports betting in Virginia.
The Virginia Lottery, which oversees the new Virginia sports betting industry, released wagering figures for January on Monday.
VA sports bettors tallied $58,896,564 in wagers (the monthly “handle“) in just one-third of a month and with a limited number of operators. That figure extrapolates to more than $160 million for a full 30-day period.
Only neighboring Tennessee, which drew $131.4 million in bets in the 30 days after launching on Nov. 1, generated more than Virginia in its debut month. However, Virginia topped Tennessee’s per-day total.
That bodes well for future months in Virginia, including February, which will include Super Bowl betting in its monthly reporting figures.
VA sports betting handle and hold for January
Of the nearly $59 million wagered in January, sportsbooks paid out $55,310,487. That created a “hold” of 6.08% ($3,586,077) for the sportsbooks. This is a little lower than the industry average, but well within the norm.
FanDuel VA, the first operator in Virginia, launched on Jan. 21. FanDuel was first to market thanks to its partnership with the Virginia-headquartered Washington Football Team.
DraftKings VA was then online on Jan. 24, BetRivers VA followed on Jan. 26, and BetMGM VA launched on Jan. 27. Caesars VA wasn’t online until Feb. 3.
Additional sportsbooks are expected to launch soon. In fact, VA Lottery officials said they plan to issue additional permits “in the coming days.”
By market maturity, PlayVirginia expects Virginia’s sports-betting handle to grow $5 billion in annual bets.
Bonuses and promotions impacted the bottom line
State law dictates a 15% tax on sports betting revenue. However, Virginia taxes the adjusted gross receipts (AGR), not the gross gaming revenue (GGR).
AGR is defined as total wagers minus total winnings and other authorized expenses, namely the value of player bonuses and other customer-acquisition promotions. It is unclear if the federal excise tax of .25% is included in the expenses column.
Here is a look at the full breakdown of numbers:
| Month | Handle | GGR | Hold % | Promos | Other deductions | AGR | Taxes |
|---|---|---|---|---|---|---|---|
| September 2023 | $520,304,187 | $54,081,414 | 10.4% | $3,684,887 | $4,780,308 | $45,616,219 | $7,040,532 |
| August 2023 | $319,005,942 | $32,359,888 | 10.1% | $743,076 | $3,711,669 | $27,905,144 | $4,155,221 |
| July 2023 | $293,611,789 | $32,471,396 | 11.1% | $827,332 | $3,433,137 | $28,210,927 | $4,115,218 |
| June 2023 | $325,455,052 | $32,668,024 | 10.0% | $1,318,014 | $4,915,680 | $26,434,330 | $3,939,701 |
| May 2023 | $403,719,160 | $48,144,550 | 11.9% | $1,781,519 | $3,815,651 | $42,547,380 | $6,285,305 |
| April 2023 | $425,982,859 | $45,121,878 | 10.6% | $1,941,696 | $4,247,815 | $38,932,367 | $5,799,965 |
| March 2023 | $511,614,541 | $55,258,910 | 10.8% | $3,802,388 | $3,805,159 | $47,651,362 | $7,413,213 |
| February 2023 | $433,807,108 | $39,766,908 | 9.2% | $7,789,446 | $3,592,213 | $28,385,249 | $4,682,125 |
| January 2023 | $510,982,033 | $49,393,812 | 9.7% | $768,221 | $6,782,949 | $41,842,641 | $6,368,899 |
| December 2022 | $503,075,150 | $50,687,278 | 10.1% | $567,709 | $3,099,072 | $47,020,497 | $7,026,829 |
| November 2022 | $518,818,987 | $57,531,255 | 11.1% | $817,857 | $3,887,949 | $52,825,450 | $7,782,639 |
| October 2022 | $528,029,938 | $51,164,199 | 9.7% | $963,187 | $4,668,013 | $45,532,999 | $6,956,643 |
| September 2022 | $411,273,323 | $53,821,382 | 13.1% | $1,706,116 | $3,722,575 | $48,392,691 | $7,257,403 |
| August 2022 | $284,671,331 | $36,978,897 | 13.0% | $1,140,242 | $4,395,696 | $31,442,959 | $4,474,132 |
| July 2022 | $266,001,583 | $26,024,408 | 9.8% | $396,903 | $4,228,729 | $21,398,776 | $3,060,304 |
| June 2022 | $295,235,271 | $25,965,182 | 8.8% | $7,834,123 | $5,146,174 | $12,984,884 | $1,871,961 |
| May 2022 | $351,452,931 | $42,537,524 | 12.1% | $9,967,230 | $5,045,967 | $27,524,327 | $3,896,270 |
| April 2022 | $399,478,366 | $36,275,264 | 9.1% | $11,253,534 | $4,260,348 | $20,761,381 | $3,040,327 |
| March 2022 | $469,484,017 | $33,700,016 | 7.2% | $14,104,925 | $5,270,649 | $14,324,441 | $2,116,289 |
| February 2022 | $401,889,135 | $27,498,133 | 6.8% | $15,816,234 | $3,797,649 | $7,884,250 | $1,406,280 |
| January 2022 | $485,544,417 | $39,050,067 | 8.0% | $16,850,981 | $3,978,519 | $18,220,567 | $2,876,609 |
| Total | $11,881,227,834 | $1,156,395,943 | 9.7% | $226,144,981 | $123,544,961 | $806,705,998 | $121,905,887 |
Sportsbooks invested heavily in Virginia sports betting promos. In fact, three of four operators reported a negative AGR, and the combined AGR was a $3.2 million loss.
However, as VA Lottery officials noted, that number will “decline considerably … to a more sustainable level” as the market matures.
Where VA sports betting taxes go
Virginia lawmakers and other stakeholders sold sports betting as a way to raise revenue.
According to the legislation, 97.5% of the taxed hold is to be deposited in the state’s General Fund.
The other 2.5% is transferred to the Problem Gambling Treatment and Support Fund, which the Virginia Department of Behavioral Health administers.
Because of the negative AGR, Virginia’s take took a hit for January. The lottery reported only one sportsbook reported a taxable profit, which is reflected here::
- Total tax: $39,710.31
- General Fund: $38,717.55
- Problem Gambling Treatment and Support Fund: $992.76
More Virginia sportsbooks to launch
Two bills could soon expand the number of Virginia sportsbook operators.
Notably, the bills would clarify that mobile sports betting licenses for soon-to-launch Virginia casinos won’t count against the cap of 12 mobile-only licenses.
BetRivers is partnered with the Portsmouth casino, and William Hill Virginia teamed with the Danville casino.
Additionally, for the 10 remaining only-online licenses, VA lawmakers would give “substantial and preferred consideration” to sportsbook operators with minority participation.
