In March, Virginia online sportsbooks saw a remarkable surge in sports betting, with wagers exceeding $300 million. This marked a notable 14% increase compared to February, which had witnessed the commencement of legal betting for the first time in the state.
On Friday, the Virginia Lottery disclosed that the total sports betting handle for the month of March amounted to $304,066,245.
The February handle of $265,778,306 has seen a significant increase of over $48 million.
Virginia achieved an impressive feat by becoming the eighth state to surpass a monthly handle of $300 million, making it the fastest state to reach this milestone.
Virginia sports bettors welcome a new operator
Prior to March, five sportsbook operators had already been launched in VA: FanDuel, DraftKings, BetMGM, BetRivers, and William Hill Sports Betting. However, only one operator, WynnBET, went live in March and officially commenced its services in Virginia on March 4th.
The monthly betting totals by operator are not disclosed by the Virginia Lottery. Nevertheless, in a recent presentation to the Virginia Lottery Board, it was revealed that FanDuel, the first operator to enter the market, claimed 53% of all wagers until March 31. On the other hand, WynnBET’s share of total wagers was reported to be less than 1% by the VA Lottery.
In the month of February, Virginia sports bettors emerged victorious with a significant amount of $277,492,368 out of the total $304 million wagered across all sportsbooks. Consequently, this resulted in a hold of 8.7% ($26,573,877) for the Virginia sportsbooks, a notable increase from the previous month’s hold of 4.6% ($12,238,780). This development brings Virginia closer to the industry average hold of 7.2%.
In March, Virginia surpassed several flourishing sports betting markets, such as Colorado ($301 million), and emerged as the seventh-largest market in the US. Virginia’s March revenue ranked behind that of the following states:
- New Jersey
- Nevada
- Illinois (presumably)
- Pennsylvania
- Michigan
- Indiana
March bonuses and promotions at VA sportsbooks
Additionally, March marked Virginia’s inaugural month of positive adjusted gross revenue (AGR).
In compliance with state legislation, a 15% tax is levied on the total revenue generated from sports betting. Nevertheless, Virginia follows a tax system that applies to the adjusted AGR instead of the gross gaming revenue (GGR).
March’s AGR amounted to $13,845,012, which is the sum of total winnings and authorized expenses (including player bonuses and other customer-acquisition costs) subtracted from total wagers.
Below is a breakdown of Virginia’s initial three months of sports betting:
| Month | Handle | GGR | Hold % | Promos | Other deductions | AGR | Taxes |
|---|---|---|---|---|---|---|---|
| February 2022 | $401,889,135 | $27,498,133 | 6.8% | $15,816,234 | $3,797,649 | $7,884,250 | $7,884,250 |
| January 2022 | $485,544,417 | $39,050,067 | 8.0% | $16,850,981 | $3,978,519 | $18,220,567 | $2,876,609 |
| December 2021 | $426,596,891 | $31,515,015 | 7.4% | $17,051,709 | $4,339,908 | $10,123,398 | $1,729,130 |
| November 2021 | $402,621,132 | $48,337,037 | 12.0% | $14,993,073 | $3,417,267 | $29,926,697 | $4,233,167 |
| October 2021 | $427,320,306 | $30,160,385 | 7.1% | $15,805,261 | $4,569,424 | $9,785,700 | $1,746,204 |
| September 2021 | $293,851,531 | $30,929,243 | 10.5% | $17,422,068 | $3,172,781 | $10,334,395 | $1,557,498 |
| August 2021 | $182,418,252 | $17,967,427 | 9.9% | $6,868,639 | $2,410,724 | $8,688,064 | $1,378,539 |
| July 2021 | $161,901,955 | $19,965,556 | 12.3% | $4,375,872 | $2,898,664 | $12,691,020 | $1,864,433 |
| June 2021 | $234,943,435 | $22,006,296 | 9.4% | $4,983,544 | $2,125,855 | $14,896,898 | $2,273,995 |
| May 2021 | $226,963,573 | $23,173,549 | 10.2% | $5,168,732 | $2,341,616 | $15,663,201 | $2,381,115 |
| April 2021 | $236,432,523 | $19,442,317 | 8.2% | $5,529,294 | $2,532,886 | $11,380,137 | $1,652,147 |
| March 2021 | $304,066,245 | $26,573,877 | 8.7% | $10,340,533 | $2,388,332 | $13,845,012 | $1,183,487 |
| February 2021 | $265,778,306 | $12,238,730 | 4.6% | $13,187,560 | $2,282,972 | ($3,231,752) | $300,594 |
| January 2021 | $58,896,564 | $3,586,077 | 6.1% | $6,343,077 | $478,612 | ($3,235,612) | $39,710 |
| Total | $4,109,224,266 | $352,443,759 | 8.6% | $154,736,576 | $40,735,209 | $156,971,974 | $24,622,911 |
Do not anticipate the promotional expenditure to cease anytime soon. Alongside Unibet Virginia, which recently debuted with enticing sign-up incentives, other sportsbooks such as Barstool Sportsbook, Bally’s, and Golden Nugget Sportsbook VA have obtained permits and are preparing to launch. These new arrivals will have to invest significantly to compete with the early pioneers.
In March, Virginia received $1.2 million in taxes from AGR, which included a contribution of almost $30,000 towards problem gambling support.
March’s earnings in Virginia consisted of:
- Total tax: $1,183,487.58
- General Fund: $1,153,900.39
- The available amount in the Problem Gambling Treatment and Support Fund is $29,587.19.
A March Madness that could’ve been madder
Naturally, the sports betting handle in Virginia for March is greatly influenced by the widely popular March Madness.
In the commonwealth, this year marked the inaugural opportunity for VA sports bettors to legally place wagers on the NCAA Men’s Division I Basketball Tournament. Renowned as one of the year’s most favored betting events, this weeks-long tournament attracts substantial interest.
Despite the legal restriction for Virginia sports bettors to wager on in-state colleges and universities, Virginians displayed great enthusiasm in placing bets on the 68-team tournament. This implies that March Madness bettors were unable to bet on the five Virginia schools participating in this year’s tourney, such as the University of Virginia and Virginia Tech.
However, Virginia sports bettors placed a total of $83,572,156 in bets on the tournament, accounting for 27.5% of all bets made in March.
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