Virginia became the latest US jurisdiction to surpass the $1 billion threshold in sports betting revenue since its inception, the monthly report released by the Virginia Lottery revealed, while month-on-month wagering on sports continued to decline in May.
Higher than Industry Average Operator Margin
The report showed licensed sports betting operators in Virginia generated $227 million in total wagers in May, down 4% compared to the $236.4 million the state posted in April. Operators accounted for total payouts to the amount of $203.8 million, registering an operator’s margin of 10.21% and raking in more than $23 million.
Cumulatively, the state which officially launched regulated sports betting on January 21, accounted for $1,092 billion in wagers, surpassing the $1 billion threshold after 4 full months of operations. From its inception, the list of approved leagues and events for sports betting continued to grow to include sports like golf, football, soccer, and basketball.
Betfair Interactive US LLC (FanDuel) in partnership with the Washington Football Team, Crown Virginia Gaming LLC (Draft Kings), BetMGM LLC, Rivers Portsmouth Gaming LLC (Rivers Casino Portsmouth), Caesars Virginia LLC (William Hill), WSI US, LLC (Wynn) and Unibet Interactive, Inc. was the seven licensed sportsbook operators which submitted their reports to the Virginia Lottery in May.
Allocation of Tax Funds
Sportsbooks deducted from the hold customer acquisition costs to the amount of $5.17 million on bonuses and free-play initiatives and $2.34 million in other deductions, to reach adjusted gross revenue (AGR) of $15.66 million. Only 4 of the operators accounted for net positive AGR which affected taxes paid to the state as Virginia places a 15% gaming tax on the AGR.
State taxes from sports betting amounted to $2.38 million, of which 97.5% or $2.32 million, will be allocated to the state’s General Fund, with the remaining less than $60,000 directed towards the Problem Gambling Treatment and Support Fund administered by the Virginia Department of Behavioral Health.