Virginia sportsbooks have seen a decline in betting volume for the second month in a row, as reported.
On Wednesday, the Virginia Lottery disclosed the sports betting figures for December 2022. Throughout the month, a total of $503 million was wagered by sportsbooks.
In contrast, the sportsbooks in Virginia saw a surge in revenue during November, raking in $518.8 million due to a busy schedule of college football games and NFL Thanksgiving matches. However, the numbers dipped slightly in December, with a 3% decrease from the previous month, totaling $503 million.
Keep an eye on Maryland
The volume of sports betting varies throughout the year, with the highest activity occurring during the most popular sports and events within a particular month. To illustrate, the betting activity during football season is approximately twice as much as the betting activity during the summer months.
However, Virginia did deviate from a recurring trend during the final month of 2022 in comparison to the same period in the previous year. To clarify our statement:
- In 2021, there was a 6% increase in numbers from November to December.
- As mentioned earlier, there was a 3% decline in numbers from November to December 2022.
Although the sample size remains limited, the decline observed in December 2022 might indicate that Maryland sports betting has established itself in the area.
On November 23, 2022, Maryland successfully launched its initial seven online sportsbooks. This development allows sports enthusiasts residing in areas such as Baltimore and Annapolis to conveniently place bets without having to venture across state borders into Virginia for access to online sportsbooks.
Could Virginians take their business to Maryland?
However, Virginians are not legally allowed to wager on Virginia college sports, such as the highly-ranked Virginia Cavaliers men’s basketball team. Consequently, the decrease in betting activity in December suggests that some individuals from Virginia may be creating accounts in Maryland whenever they travel north to the Old Line State.
Following the launch of online sports betting in Maryland, John Hagerty, the spokesperson for the Virginia Lottery, emphasized that their primary responsibility is to license and regulate sports betting in the Commonwealth. In a conversation with PlayVirginia, he provided an update on the current status.
It is important to clarify that our regulatory role does not involve operating businesses or conducting any fiscal analysis.
In addition, Hagerty declined to provide a statement regarding the potential tax revenue loss resulting from Virginia’s prohibition on in-state college team wagers. Although the state permits betting on college sports, it only applies to teams located outside of Virginia.
“The limitation is a component of the original legislation that established sports betting in Virginia, therefore it falls under the jurisdiction of Virginia lawmakers.”
Currently, the Virginia General Assembly is convening, focusing on various gaming matters including the selection of suitable casino sites and methods of aiding gambling addiction recovery. However, it appears that Virginia sports team betting is not currently considered a top priority for 2025.
An otherwise strong finish to 2022
Virginia’s legalization of sports betting in 2021 led to predictable results: every month in 2022 outperformed its corresponding month in the previous year.
In December 2021, the sports betting industry witnessed a significant boost with bettors placing bets totaling $426.6 million. This remarkable figure represents a notable 17.9% increase compared to the previous year.
In terms of annual figures, the total amount of sports bets made by customers in 2021 exceeded $3.2 billion. By 2022, this number surged to approximately $4.9 billion, indicating a remarkable 52.5% growth from the entirety of 2021 to the entirety of 2022.
Virginia sportsbooks still did well in December
According to the most recent report from the Virginia Lottery, sportsbooks in December contributed a little over $7 million in taxes. This amount was generated from the taxes on legal bets placed in Virginia during that month.
- The general fund received a total of approximately $6.9 million.
- A total of $175,671 was allocated for addressing the issue of problem gambling.
The Problem Gambling Treatment and Support Fund receives 2.5% of gaming profits allocated by the Virginia Department of Behavioral Health.
According to the Virginia Lottery,
- Out of the 14 sportsbooks in the state, eight of them recorded positive numbers after considering customer wins and authorized state deductions.
- Sportsbooks were permitted by the state to subtract approximately $567,709 from their earnings for bonuses and promotional offers provided to customers. Additionally, they were allowed to deduct about $3.9 million for other qualifying expenses.
Bettors beat Virginia sportsbooks at higher levels
In December, Virginia bettors experienced a more favorable outcome compared to November, with companies reporting a hold percentage of 10.1% in the recently disclosed December figures, as opposed to 11.1% in the previous month.
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