Virginia Sets New Record with Over $1B in Gross Sports Wagering Revenue

Virginia has become the seventh state to surpass $1 billion in gross sports wagering revenue, according to a report released by the Virginia Lottery. The state achieved this milestone in just 29 months since the launch of legal wagering in January 2021. 

Virginia Sportsbooks Generate $48.1 Million in May 2023

In May 2023, sportsbooks in Virginia generated $48.1 million in gross revenue, contributing to the overall milestone. The state has proven to be a favorable environment for operators, with a consistent performance in terms of hold percentage. The total handle for May reached $403.7 million, experiencing a 5.2% decline compared to the previous month but still reflecting a significant 14.9% increase year-over-year.

The majority of wagers, amounting to $399.96 million, were placed through online platforms, solidifying online wagering as the preferred method among Virginians. In contrast, casino wagering accounted for just $3.75 million of the total wagers for the month. Mobile gaming also dominated in terms of gross winnings, with players cashing in $352.53 million via mobile devices compared to $3.03 million through casinos.

The Virginia Lottery did not disclose specific figures for individual operators in its report. However, it did confirm that 11 operators achieved net positive adjusted gross revenue, making them eligible for tax payments. Notably, bet365, which entered the Virginia market in January, is likely among the operators that paid taxes. Despite posting close to $10.5 million in gross revenue since its launch, bet365 reported a negative adjusted gross revenue of nearly $4.8 million due to promotional credit deductions.

Virginia Lottery Rakes in $6.3 Million in Tax Revenue from Sports Betting Operators

The Virginia Lottery collected approximately $6.3 million in tax revenue from the operators’ adjusted gross revenue, which totaled $42.5 million. The state’s tax rate of 15% has contributed to a significant influx of funds to state coffers. In the first 11 months of fiscal year 2023, sports wagering taxes have reached $67.1 million, surpassing last year’s pace by $17.2 million.

Moreover, Virginia has collected $35.5 million in tax receipts in the first 18 months of legal wagering, highlighting the positive impact of the budget amendment implemented in July 2022. Overall, Virginia’s sports betting industry has witnessed significant growth in 2023. Handle and gross revenue for May showed substantial year-over-year increases, and the state’s hold percentage has consistently improved throughout the year. With the $1 billion milestone achieved, Virginia’s sports wagering market continues to thrive and contribute to the state’s economy.