Despite a decline in betting activity to its lowest point since September 2021, PlayVirginia reveals that sportsbooks continue to achieve robust year-over-year growth.
In April, sportsbooks in Virginia received less than $400 million in wagers, marking the first time since September 2021 that they fell below this threshold. However, despite the decrease in wagering, revenue actually increased compared to March. This slowdown in April is part of a seasonal trend that is expected to continue until August, yet it shouldn’t overshadow the impressive year-over-year growth of nearly 70% in Virginia’s sports betting market, as reported by PlayVirginia.
Eric Ramsey, an analyst for the PlayUSA.com Network, including play-virginia.com, stated that the NBA Playoffs, the Final Four, and the start of baseball season generated sufficient interest to captivate bettors in April. He mentioned that these opportunities will diminish in the upcoming months until football season commences. However, Ramsey emphasized that Virginia’s burgeoning market is in a favorable position for a resurgence in the autumn.
According to data released by the Virginia Lottery on Wednesday, Virginia’s sportsbooks received a total of $399.5 million in wagers in April. This marked a significant increase of 69% compared to the $236.4 million wagered in April 2021. However, there was a decline of 15% in wagers from March, as the total amount wagered decreased from $469.5 million to $399.5 million. On average, bettors placed approximately $13.3 million per day in April, which was lower than the average of $15.1 million per day in March.
In April, sportsbooks generated a total revenue of $36.3 million, marking an 86% increase from the $19.4 million earned in April 2021 and an 8% increase from the $33.7 million earned in March. After accounting for $11.3 million spent on promotions and $4.3 million in other deductions, the adjusted revenue amounted to $20.8 million. Consequently, this generated $3.0 million in state taxes.
Ramsey noted that in the absence of football or a major betting event like the first weekend of the NCAA Tournament, sportsbooks tend to lose momentum as summer approaches. However, despite this trend, the industry has consistently witnessed substantial year-over-year gains, indicating that it has largely remained unaffected by economic challenges. Nevertheless, Ramsey pointed out that these economic obstacles pose the most significant risk to Virginia’s sports betting industry, which has experienced uninterrupted growth since its inception.
To access additional insights and analysis regarding regulated sports betting in Virginia, please visit play-virginia.com/revenue.
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