In July, sports bettors in Virginia set a new record low for the total handle, as they wagered a mere $161.9 million.
On Wednesday, the most recent statistics for VA sportsbooks were made public by the Virginia Lottery.
In Virginia, the record-low was achieved during the sixth month of legalized and regulated sports betting.
Following a month of bettors amassing a staggering $235 million in bets during June, their total experienced a significant decline of 31.1% to reach $161,901,955 in July.
It is not uncommon for US sports-betting states to experience a summer slump. However, the upcoming NFL and NCAA college football seasons, which are highly anticipated, will replace the lighter summer sports schedule and greatly enhance the situation.
July figures slump, but little reason to worry
On January 21, the first-to-market FanDuel made its debut, marking the official launch of sports betting in Virginia.
After a span of five months, a total of seven VA sportsbooks had commenced operations and started accepting wagers. Their collective efforts resulted in a significant contribution of $161.9 million in betting activity during the month of July.
Barstool Sportsbook, the eighth operator, made its debut on Aug. 10 and will play a significant role in augmenting the monthly revenue figures in Old Dominion going forward.
In July, not only did the overall betting handle decrease, but the pace of betting also decreased. Throughout June, Virginia bettors placed an average of $7.8 million in wagers daily. However, in July, this daily betting amount decreased to $5.2 million.
In July, the 2020 Summer Olympics finally kicked off after a one-year delay, alongside the 2021 NBA Finals. However, these events failed to generate significant interest among Virginia sports bettors.
However, key stakeholders are unlikely to be overly concerned about this summer slump. This is because the data from 2020 was distorted by the COVID-19 pandemic, and historically, the month of July has consistently had the lowest volume of sports betting across the US in both 2018 and 2019.
Closer look at VA sports betting in July 2021
Virginia’s July 2021 sports betting figures reveal a persistent strategy of attracting new customers through the utilization of free bets and promotional funds.
In the span of a month, sportsbooks recorded a total gross gaming revenue (GGR) of $19,965,556. This figure indicates a 9.2% decrease from the $22 million earned in June.
The adjusted gross revenue (AGR) for the given period was $12,691,020, which was a decrease compared to the previous month’s AGR of $14.9 million. The AGR is calculated by subtracting the total winnings and authorized expenses, such as player bonuses and customer acquisition promotions, from the total wagers.
The cumulative expenditure in Virginia, solely considering bonuses and promotions, has now reached almost $50 million, specifically $49,928,611.
To put it differently, the competition among VA sportsbooks remains fierce as they strive to gain a larger market presence, with FanDuel currently holding a significant advantage.
The complete monthly breakdown of Virginia’s sports betting revenue is provided below:
| 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 |
In July, the total amount of state taxes generated was $9,695,482, out of which $46,610 was allocated for assisting individuals with problem gambling.
In July, there was a hold of 12.3% in Virginia, setting a new monthly record. This hold played a role in compensating for a portion of the decline in betting volume.
Where Virginia ranks among other states
Despite not being operational for the entire month of January, the sports betting market in Virginia has shown impressive competitiveness in 2021 when compared to other states’ markets, especially considering its official kickoff date of January 21st.
Virginia typically falls in the sixth to eighth position when it comes to the monthly handle among all states engaged in sports betting. However, as the market in the commonwealth evolves, it is gradually narrowing the gap with states like New Jersey, Nevada, Illinois, and Pennsylvania, which had a head start in this industry compared to Virginia.
In addition, Virginia holds the eighth position among all US states with a total of eight sportsbooks, making it one of the states with the highest number of operators.
The Virginia sports betting market is in a favorable position for the fall and winter sports seasons, as several other sportsbooks are expected to launch in the state by the end of the year. With football already underway and the NBA, NHL, and college basketball set to return, VA sports bettors are anticipated to increase their betting activity.
Related Articles
