In February, Virginia’s sports bettors placed bets exceeding $265 million at licensed sportsbooks, marking the commonwealth’s inaugural month of legal wagering in full swing.
On Thursday, the Virginia Lottery unveiled the latest sports betting statistics.
Virginia’s sports betting debut in January was followed by a remarkable month, with a total handle of nearly $250 million. Towards the end of the month, four operators, including FanDuel, entered the market and contributed to a January handle of approximately $59 million.
In February, a new operator joined the team, and the NFL Super Bowl betting provided an additional boost.
The Virginia Lottery, responsible for overseeing sports betting in Virginia, reported that Super Bowl betting made up over 7% of the February handle, amounting to a total of $19,559,701.
VA sportsbooks
In January, FanDuel, DraftKings, BetMGM, and BetRivers were introduced. William Hill Virginia joined the market on February 3, allowing it to make a significant impact on Virginia’s February statistics after nearly a month of operation.
Nevertheless, the VA Lottery fails to provide a detailed breakdown of monthly betting done by each individual operator.
In total, the five sportsbooks accumulated a sum of $265,778,306 in revenue and distributed $253,539,526 to players as winnings.
The VA sportsbooks generated a profit of $12,238,780, resulting in a “hold” percentage of 4.6%.
In January, the sports betting operators held 6.1%, slightly below the industry average of approximately 7.2%. This could potentially be attributed to recent Super Bowl losses or outstanding March Madness futures bets that are yet to be settled.
Sportsbooks’ bonuses and promotions in February
Instead of taxing the gross gaming revenue (GGR), Virginia law applies a 15% tax on the adjusted gross receipts (AGR) generated from sports betting.
The AGR is calculated by deducting the sum of total winnings and authorized expenses, which mainly includes the value of player bonuses and other customer-acquisition promotions, from the total amount wagered.
In February, the losses reported by sportsbooks amounted to $3,235,612, which is approximately equivalent to the losses reported in January.
Below is a summary of Virginia’s initial two 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 |
It is highly probable that Virginia sportsbooks will persist in investing significantly in fresh promotions and bonuses to attract new players. In February, this entailed a substantial marketing campaign centered around the Super Bowl, which is considered one of the largest betting events of the year.
The marketplace in Virginia is already highly competitive, but with the arrival of new VA sportsbooks, operators will persist in using promotional offers to compete for a larger market share.
Barstool, Bally’s, Golden Nugget on deck
In February, Virginia had a total of five operational sportsbooks. However, on March 11, WynnBET entered the scene, becoming the sixth sportsbook in the state. Its presence will be considered in the upcoming calculation of Virginia sports betting totals.
However, on March 15th, the Virginia Lottery granted temporary permits to the following sportsbooks, indicating that three other significant players are ready to enter the market.
- Penn Interactive/Barstool Sports
- Bally’s
- Golden Nugget
Nevertheless, Virginia does not have a specific launch date confirmed by any of the operators.
Barstool, Bally’s, and Golden Nugget are set to become the seventh, eighth, and ninth sportsbooks in Virginia, but this is just the beginning as more are expected to join in the future.
HB 1847 and SB 1254 were recently signed by Virginia Governor Ralph Northam. These bills have effectively revised existing legislation, guaranteeing that the issuance of sportsbook licenses for upcoming Virginia casinos will not be included in the state’s limit of 12 online permits. Consequently, Virginia now has the potential to host 18 sportsbooks or even more in the coming years.
How Virginia sports betting taxes are used
According to Virginia law, the state’s General Fund receives 97.5% of the taxed hold.
2.5% of the funds are allocated to the Problem Gambling Treatment and Support Fund, managed by the Virginia Department of Behavioral Health.
In February, Virginia’s earnings comprised:
- Total tax: $300,593.91
- General Fund: $$293,079.06
- The current balance of the Problem Gambling Treatment and Support Fund is $7,514.85.
As Virginia’s AGR moves closer to industry averages, we can expect those figures to increase in the coming months.
PlayVirginia estimates that the annual handle in Virginia will increase by $5 billion in sports bets, based on market maturity.
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