According to the Virginia Lottery, the total amount of sports bets made in October exceeded $500 million for the first time.
A staggering $528 million in bets was placed by customers at the 13 sportsbooks in Virginia, setting a record for a single month. Among these operators, seven reported positive numbers after accounting for customer wins and state deductions. In comparison, a month earlier, nine out of the 13 sportsbooks had reported a profit.
Sportsbooks in Virginia were permitted to offer approximately $963,000 in bonuses and promotional incentives to customers, despite the state imposing a 15% tax rate on profits from sports betting.
October’s $528 million is:
- September’s handle of $411.3 million has increased by 28%.
- In October 2021, Virginia witnessed a 24% increase in collected funds compared to the same month last year, amounting to $427.3 million. It is noteworthy that during this period, Virginia had only nine sportsbooks operating.
Smaller profits from October Virginia sports bets
In comparison to one month prior, customers experienced improved outcomes against the house. According to recently released October figures, companies reported a win percentage of 9.7%, which is lower than the 13% win percentage recorded in September.
Despite October recording a record number of sports bets in Virginia, the adjusted revenue decreased from $48.4 million in September to $45.5 million in the latest figures.
Both winning customers and winning sportsbooks are subjected to state taxes. However, due to the decrease in revenue, the Commonwealth will receive reduced contributions from these companies.
In October, the Virginia Lottery generated over $6.95 million from sportsbooks, a slightly lower figure compared to the more substantial $7.25 million collected in September.
No Virginia college bets leave tax money on the table
Virginia’s prohibition on betting on in-state college sports could potentially result in missed financial opportunities.
Even though customers continue to place bets on the Cavaliers and Hokies, they are now resorting to unregulated sites and apps to place their bets on Virginia teams from the comfort of their homes.
According to a recent report published by the American Gaming Association, an estimated $511 billion annually is directed by gamblers towards illegal sportsbook and casino sites.
The AGA estimates that illegal wagering results in a loss of $13.3 billion in tax revenue for state governments annually, as these transactions are not subject to taxation by the states.
The President and CEO of AGA, Bill Miller, referred to the unlawful gambling market as a detrimental issue within our society.
This report sheds light on the extensive reach of the illegal and unregulated market, confirming what we have long been aware of.
The revenue generated from legal bets in Virginia’s October taxes.
- The general fund received a total of approximately $6.8 million.
- A total of $173,916 was allocated for addressing the issue of problem gambling.
The Virginia Department of Behavioral Health receives 2.5% of the profits generated from gaming activities.
In October, Virginia’s handle of $528 million broke the previous record of $485.5 million set in January 2022.
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