In December 2021, Virginia sportsbooks concluded an exceptional inaugural year of sports betting by generating over $31.5 million in gross revenue from a staggering $425 million in wagers.
According to PlayVirginia, Virginia’s sports betting market had a remarkable debut year, becoming one of the first states to generate over $3 billion in sports wagers. Although December fell slightly short of the monthly handle record set in October, it still concluded the year with active and energetic betting activity, providing a fitting end to a successful inaugural year.
Dann Stupp, lead analyst for PlayVirginia.com, stated that sportsbooks have been consistently setting records, making it somewhat underwhelming when they fail to do so. However, December proved to be one of the most successful months for Virginia’s operators. Stupp emphasized that the industry’s primary concern is the momentum gained throughout the year. The last four months exceeded expectations, allowing sportsbooks to end the year on a positive note.
A look at December 2021 sports betting in Virginia
According to the Virginia Lottery’s data released on Tuesday, sportsbooks recorded a total of $426.6 million in wagers during the month of December. This marks their third consecutive month with wager amounts exceeding $400 million.
In December, the total amount of wagers increased by 6% compared to November, reaching $402.6 million. However, it fell just shy of the previous record set in October at $427.3 million. Despite this, the average daily betting volume continued to rise, reaching $13.8 million per day throughout December, compared to $13.4 million per day in November, over a period of 31 days.
In December, bettors had better luck compared to November as sportsbooks managed to generate $31.5 million in gross revenue. Although it fell short of the record-breaking $48.3 million win in November by 35%, this figure still stands as the second-highest all-time.
| 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 |
Sportsbooks generated $10.1 million in taxable revenue, resulting in $1.7 million in state taxes, thanks to a promotional spending of $17.1 million.
Recapping first year of VA sports betting
Virginia’s inaugural year, commencing on January 21, 2021, has distinguished itself as one of the finest introductions in the annals of American history.
Virginia’s sportsbooks generated revenue throughout the year.
- In 2021, some US states that permitted legal sports betting witnessed a total of $3.2 billion in wagers, ranking eighth in terms of wager amounts.
- The gross revenue amounts to $285.9 million.
- State taxes amount to $20.3 million.
Eric Ramsey, an analyst for the PlayUSA.com Network, including play-virginia.com, expressed that despite the remarkable progress made in the first year of sports betting in Virginia, the market is far from reaching its full potential. He mentioned that Virginians are still in the process of familiarizing themselves with the various aspects of legal sports betting, and operators will persist in seeking opportunities to broaden their customer base. Ramsey emphasized that 2021 merely marked the initial phase of this journey.
Virginia’s inaugural year of sports betting has been a revelation. Almost overnight, the Commonwealth emerged as one of the country’s largest markets, while its regulators successfully established a robust framework that makes Virginia an attractive destination for operators.
Furthermore, Virginians demonstrated a diverse array of interests and ultimately placed higher bets on basketball as compared to football.
Stupp stated that the first year has been a great learning experience, and the state is transforming into a distinctive market. Despite some mistakes made by regulators, such as the prohibition on betting for in-state colleges and the decision to tax adjusted gross revenue, overall, Virginia has done well and this will contribute to a thriving market in the future.
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