Virginia Sports Betting Revenue Cracks $300M In Second Full Month
According to a press release from the Virginia Lottery, “bettors wagered more than $304 million, including more than $83 million on March Madness” at legal Virginia sportsbooks in March.
That makes the Old Dominion State the eighth to post a $300 million month, and by far the fastest to reach the benchmark. However, when we adjust for delayed mobile launches in states like Illinois and Michigan, Virginia’s timeline to $300 million looks less like an outlier.
- Virginia – 2nd full month
- Michigan – 2nd full month
- Illinois – 3rd full month
What appears to be driving these numbers in developing markets is a better-educated populace and the ongoing coronavirus pandemic shifting consumers online. Consumers are far more aware of legal sports betting than they were in 208 and 2019, evidenced by the slow burn seen in the early adopter states.
As I explained in a previous column on Tennessee’s fast start, “The synchronized mobile betting launch in Tennessee was well-covered and long-awaited. Delays had people clamoring for the launch and provided media and the operators an opportunity to spread the word and penetrate the market.”
Topline Virginia Sports Betting Numbers
After launching on January 21, 2021, the state’s sports betting market has put up some impressive numbers, tallying $628.7 million in wagers and $42.4 million in gross gaming revenue in just over two months.
Virginia Sports Betting Market Is Getting Crowded
There were six licensed sports betting operators in March:
- Betfair Interactive US LLC (FanDuel)
- Crown Virginia Gaming LLC (DraftKings)
- BetMGM LLC
- Portsmouth Gaming Holdings LLC (BetRivers)
- Caesars Virginia LLC (William Hill)
- WSI US, LLC (Wynnbet)
Several other operators have since received approval:
- Caesars Virginia, LLC – Permit – Approved 1/27/2021
- Golden Nugget Online VA, LLC – Temporary Permit – Approved 3/15/2021
- Bally’s Corporation – Temporary Permit – Approved 3/15/2021
- Penn Sports Interactive, LLC – Temporary Permit – Approved 3/15/2021
- Unibet Interactive, Inc. – Temporary Permit – Approved 4/21/2021
Tax Revenue Comes in at a Trickle
As is the case in other states, Virginia sports betting operators can reduce their adjusted gross revenue via industry-friendly deductions, including bonuses and free play. That is tamping down tax revenue collections in new markets, as operators give away the store to attract customers and gain market share.
As the Virginia Lottery press release notes, “State law places a 15% tax on sports betting activity based on each permit holder’s adjusted gross revenue (AGR), which is defined as total wagers minus total winnings and other authorized deductions.”
For March, sports betting operators generated $26.6 million in revenue, but that number is halved after deducting free-play, bonuses, and other authorized deductions.
| Gross sports gaming revenues: | $304,066,245 |
| Gross winnings: | $(277,492,368) |
| Bonuses and Promotions: | $(10,340,533) |
| Other deductions: | $(2,388,332) |
| AGR (Adjusted Gross Revenue): | $13,845,012 |
With just three operators reporting positive AGR in March, the state collected $1,183,487.58, a tax rate of just 4.5% of gross gaming revenue.
The distribution of the tax revenue was as follows:
- General Fund: $1,153,900.39
- Problem Gambling Treatment and Support Fund: $29,587.19
Steve Ruddock is the content director for BettingUSA and the Editor-in-Chief of Gaming Law Review.
Steve has covered the legal and legislative developments in the US gambling sector for more than a decade for online and print publications.
