Some familiar names dominate the list of biggest Virginia sportsbooks during the first eight months of sports betting.
At a Virginia Lottery Board meeting held on Wednesday, October 27, officials presented the most recent statistics regarding the commencement of legal sports betting on January 21.
At present, there are a total of nine sports betting operators operating in the commonwealth. However, it is worth pondering over which Virginia sportsbooks hold the position of being the largest.
FanDuel received a significant advantage by being the first to enter the market.
Biggest Virginia sportsbooks: FanDuel on top
Gina M. Smith, the deputy director of gaming compliance at the Virginia Lottery, states that FanDuel continues to manage almost 50% of all wagers made in the state.
Smith provided a comprehensive analysis of the betting volume (“handle”) for each VA sportsbook from January to September this year during her presentation to the VA Lottery Board.
FanDuel was granted permission to launch first, thanks to its collaboration with the Washington Football Team, based in Virginia. It officially debuted in late January.
FanDuel’s early advantage has resulted in substantial success, as they have managed to process a significant portion of Virginia’s sports wagers, specifically 45.4% of the estimated $1.9 billion.
Lee stated that not many changes have occurred since the launch and honestly, FanDuel continues to remain at the forefront.
Despite the presence of eight other sportsbooks in Old Dominion, only DraftKings (26.1%) and BetMGM (17.9%) have managed to secure a market share in the double digits. Both DraftKings and BetMGM were the second and third operators to commence their services in Virginia, debuting on January 24th.
Below is a comprehensive breakdown, outlining the top Virginia sportsbooks between January and September 2021:
| Sportsbook | Market share |
|---|---|
| FanDuel | 45.4% |
| DraftKings | 26.1% |
| BetMGM | 17.9% |
| Caesars | 7.6% |
| BetRivers | 1.1% |
| Barstool | 1.0% |
| WynnBET | 0.5% |
| Unibet | 0.4% |
| Golden Nugget | 0.0% |
What are Virginia sports bettors wagering on?
We are aware of the locations where Virginia sports bettors are placing their wagers. Furthermore, we have acquired information regarding the specific bets they are placing.
Smith provided a detailed analysis of betting activity based on sports and categories during the VA Lottery Board meeting.
Just a quick reminder, Virginia sports betting was introduced in January, just in time for the NFL conference championships and Super Bowl. However, the current Virginia sports betting figures do not account for a complete NFL and college football season yet.
Thus, the categorization of Virginia sports betting by sport is expected to undergo significant modifications by early next year. In simpler terms, it is unlikely that NBA/pro basketball betting (22.9%) will continue to hold its position as the most popular option.
Lee said, “Perhaps when we meet again, during our upcoming complete football season, it will be fascinating to observe how our market share changes. However, at the moment, basketball remains ahead.”
Here’s the full breakdown:
| Sport | Portion of handle |
|---|---|
| Pro basketball | 22.9% |
| Parlays | 17.8% |
| Baseball | 14.7% |
| Tennis | 11.1% |
| Football | 9.7% |
| College basketball | 7.2% |
| Soccer | 6.0% |
| Hockey | 3.6% |
| Golf | 2.2% |
| Boxing | 0.7% |
| MMA | 0.7% |
| Olympics | 0.7% |
| Motorsports | 0.3% |
| Other | 2.4% |
Biggest Virginia sportsbooks also spend mightily
What are the steps for a sports betting operator to become one of the largest Virginia sportsbooks?
As previously mentioned, the initial launches undeniably favored FanDuel, DraftKings, and BetMGM.
Nevertheless, when it comes to promotional spending, those operators are also significantly surpassing their competitors.
Virginia has a vested interest in closely monitoring the marketing expenses of each operator. This is due to the fact that VA sportsbooks are required to pay taxes based on adjusted gaming revenue (AGR), rather than gross gaming revenue (GGR). AGR takes into account deductions, such as promotional funds disbursed through deposit bonuses and free bets.
| Sportsbook | Percentage of promotional spend |
|---|---|
| FanDuel | 36% |
| DraftKings | 23% |
| BetMGM | 21% |
| Caears | 14% |
| Barstool | 2% |
| BetRivers | 2% |
| Unibet | 1% |
| WynnBET | 1% |
| Golden Nugget | 0% |
The top three Virginia sportsbooks not only dominate in terms of their size but also lead in marketing and promotional investments. Nevertheless, it’s worth noting the emergence of Caesars (formerly William Hill). This revamped sportsbook has significantly intensified its marketing efforts in Virginia lately. With a consistent flow of innovative promotions, it has the potential to challenge the current leaders, FanDuel, DraftKings, and BetMGM, in the near future.
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