Virginia has officially become the fastest US state to reach a sports betting handle of $1 billion, achieving this milestone in approximately four months.
On Thursday, the Virginia Lottery unveiled its sports betting report for the month of May. The report pertains to the regulation of legal sportsbooks in VA.
During May, Virginia sports bettors accumulated a total of $226,963,573 in wagers, marking the fourth complete month of betting in the commonwealth.
The cumulative amount since its late-January launch now stands at almost $1.1 billion, specifically $1,092,137,212.
Virginia’s road to $1 billion in sports wagers
Tennessee, which is one of the neighboring states to Virginia, formerly held the title for achieving the fastest record in reaching $1 billion in sports wagers.
In approximately six months, the Volunteer State achieved a remarkable milestone by surpassing the billion-dollar mark after introducing legal sports betting in November 2020.
Before Tennessee took the lead, it was New Jersey that held the title of being the top US state for sports betting. New Jersey, which currently dominates the sports betting market, achieved this feat by launching early and attracting bettors from neighboring New York. In just seven months after its launch in June 2018, New Jersey surpassed $1 billion in total wagers.
On January 21, the official launch of sports betting took place in Virginia, with FanDuel Sportsbook making its debut in partnership with the Washington Football Team. Since then, six additional sportsbooks have been introduced in VA, while three others have obtained permits but are yet to commence operations.
In March, Virginia witnessed a surge in sports betting activity, making it the busiest month for the state. Thanks to the heightened interest in college basketball betting during the highly anticipated March Madness tournament, Virginia bookmakers amassed an impressive sum of over $304 million in sports wagers.
This is the complete journey of Virginia towards achieving $1 billion in sports wagers.
| 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 probable that VA surpassed the $1 billion mark in sports wagers around mid-May. Nevertheless, the VA Lottery has not provided a specific date for when the VA sports-betting apps achieved this milestone.
A look at VA’s May sports betting handle
In May, Virginia sportsbooks saw a growth in their earnings, totaling $23.2 million, surpassing the $19.4 million they made in April. This increase occurred despite a 4.4% decrease in the monthly handle.
In May, the adjusted gross revenue (AGR) increased to $15.7 million from the previous month’s $11.4 million.
In May, sportsbooks in VA contributed a total of $2.4 million in state taxes, out of which $59,528 was allocated towards supporting individuals with gambling issues.
Similar to April, May is generally a less active month for sportsbooks nationwide. The absence of NCAA basketball, the NFL, and college football leads to a decrease in sports bettors’ engagement during the spring.
Despite this, bettors still had numerous choices for wagering, including prominent sports leagues such as MLB, the NBA, NHL, WNBA, PGA Tour, NASCAR, UFC, and more.
Most major US sports betting markets have experienced a decline in sports betting activity, and the same trend can be observed in the recent decline at VA sportsbooks.
Among the top 10 U.S. markets that have released May data, Virginia experienced a larger decrease in wagering compared to New Jersey (which saw an increase of 8.9%), Indiana (which saw an increase of 7.6%), Colorado (which saw an increase of 1.9%), and Iowa (which saw a decrease of 2.9%). However, Virginia’s decrease was not as substantial as those observed in Michigan (which saw a decrease of 6.0%), Tennessee (which saw a decrease of 6.7%), and Pennsylvania (which also saw a decrease of 6.7%).
Revenue breakdown by sportsbook operator is not provided by the VA Lottery. Nevertheless, officials stated during a VA Lottery Board meeting earlier this year that FanDuel had accounted for 53% of all wagers in the first two-plus months of betting.
How Virginia got to $1 billion so quickly
After FanDuel initially entered the VA market, several other competitors have since joined.
The sportsbooks that were launched on the following dates are DraftKings (January 24), BetMGM (January 27), BetRivers (January 27), William Hill (February 2), WynnBet (March 11), and Unibet (April 28).
Super Bowl LV on Feb. 7 witnessed the initiation of wagering at the initial five sportsbooks. As a significant betting extravaganza, the annual NFL championship game played a pivotal role in kickstarting the VA market.
Bally’s, Golden Nugget Online Sportsbook, and Barstool Sportsbook have obtained permits in Virginia, however, they are yet to launch. The companies are aiming to make their debut in August and September, aligning with the NCAA football and NFL season.
Furthermore, it is anticipated that the initial Virginia casinos opening in 2022 and 2025 will feature on-site retail sportsbooks.
One of the reasons why Virginia was the first to achieve the $1 billion milestone is due to its competitive market. Additionally, the presence of a reasonable tax rate (15%) and minimal market restrictions (with the exception of a prohibition on betting on in-state schools) also contributed to this accomplishment.
Virginia was fortunate in terms of timing as well. While numerous states introduced sports betting in 2020 during the COVID-19 pandemic, which caused a significant disruption in the sports industry, Virginia opted to launch its sports betting after many sports leagues had already resumed or were in the process of returning to their usual schedules.
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