In Virginia, sports betting operators had an amazing May. They earned $60m adjusted gross revenue compared with $42.5m May 2023. Betting in Virginia topped $505.6m for the month, an increase of 25.2% over the same period last year.
The US sporting calendar is to blame for the decline in handle and revenue. Men’s and Women’s NCAA Basketball semi-finals, and the finals themselves were held in April. The women’s tournament in basketball attracted more viewers than ever.
The NBA, NHL and regular baseball season began in May.
According to the report, Virginia betting operators’ win rates were 11.9%, which continued a double-digit hold trend. This was the 21st instance of a hold in double digits since January 2021, when the first platforms were launched.
As operators deducted just under $6m for promotions and other deductions, the state could tax up to $53.6m. In the early days of legal sports betting, operators were allowed to deduct their promotional wagering. In June 2022 regulators altered the rules, limiting promotional write-offs for the first year of a new platform’s existence.
Only Betr and Fanatics (both launched in 2023) are eligible to write off their losses.
Tax revenue for the state totaled $8.1m, of which $202,184 was allocated to funding problem gaming and responsible gambling. According to law, 2.5% tax revenue goes towards problem and responsible gambling initiatives.
Virginia Lottery doesn’t break down their sports betting report by operator or sport. The lottery did report that out of 14 operators in live action, 11 showed a net positive AGR for May.
Virginia has the 9th largest population in America and legalized online sports betting. New Jersey is the next largest state in terms of size, with bettors wagering $801.5m and gross gaming revenues totaling $78.8m.
