In March, the NCAA Tournament played a significant role in driving Virginia’s sportsbooks to reach almost record-breaking levels, with a staggering amount of nearly $470 million in wagers.
According to PlayVirginia, which monitors Virginia’s sports betting market, the month of March witnessed the highest betting activity in the absence of NFL football, marking the second-highest handle ever recorded. This surge in bets served as a final boost for sportsbooks before a seasonal slowdown that is expected to continue until the fall.
Eric Ramsey, an analyst for the PlayUSA.com Network, including play-virginia.com, stated that the NCAA Tournament’s immense popularity makes March a crucial month for the industry. It offers sportsbooks an additional surge in activity before the slower months arrive. Ramsey noted that Virginia surpassed expectations, despite the prohibition on betting on local college teams and the absence of the University of Virginia. He further acknowledged that the industry has thrived in expanding the emerging market over the past seven months, with March’s outcomes acting as an additional triumph.
According to the Virginia Lottery, online sportsbooks in Virginia saw a significant increase in wagers during March. The total amount of wagers reached $469.5 million, marking a 54% surge compared to the $304.1 million wagered in March 2021. On average, sportsbooks generated $15.1 million per day throughout the 31 days of March, a noticeable growth from the $9.8 million per day recorded in March 2021. These figures also reveal a 17% rise from the $401.9 million wagered in February, and the only month that surpassed March’s betting activity was January, with a record-breaking $485.5 million bet.
In March, sportsbooks recorded a significant increase in gross revenue, earning $33.7 million. This marked a 27% growth compared to March 2021’s $26.6 million and a 23% increase from February’s $27.5 million. Deducting $14.1 million in promotional spending and $5.3 million in other expenses, sportsbooks generated $14.3 million in adjusted revenue. Consequently, the state collected $2.1 million in taxes from this adjusted revenue.
March marked the second consecutive month where there was a year-over-year growth surpassing 50%. It is expected that this steady growth will persist, despite a potential slowdown in sportsbooks, as bettors shift their focus towards the NBA playoffs, baseball, and major golf tournaments.
Ramsey stated that there will be a decline in volume in the coming months, however, he also mentioned that the industry will shift its focus. The football season and the NCAA Tournament present excellent chances to attract new customers, leading to an increase in promotional activities. Additionally, as sports like golf gain prominence during the summer, the industry can still thrive despite a decrease in volume.
To obtain additional details and analysis regarding regulated sports betting in Virginia, please visit play-virginia.com/revenue.
You can reach out to Zack Hall at Catena Media via email at [email protected]
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