Legal sports betting went live in Virginia on January 21, 2021. State laws allow for up to 12 potential online sportsbooks to set up shop in Virginia when the industry reaches full maturity.
The Virginia Lottery oversees the state’s sports betting industry. Prospective operators must go through a thorough vetting process conducted by the Virginia Lottery before an online sports betting license is awarded.
Six of sports betting’s biggest brands offer mobile sports betting in Virginia as of March 2021. February 2021 marked the first full months of operations for the state’s mobile sports betting industry.
VirginiaCasinos.com updates this page each month with the latest revenue figures released by the Virginia Lottery.
Virginia Mobile Sports Betting Tax Revenue 2021
Virginia applies a 15% state tax to online sports betting revenue. The state takes those taxes out of each operator’s adjusted gross revenue (AGR), calculated as gross revenue minus promo credits and other adjustments.
Most of Virginia’s mobile sportsbooks posted net AGR losses in January and February, as the books offered extensive welcome bonuses and pre-launch promotions as part of their customer acquisition strategies.
Only one of the five mobile sportsbooks operating in February turned a net AGR profit. Virginia collected $300,593.91 in February taxes from that operator.
As 2021 goes on, net revenues and tax collection for the state will far exceed the numbers posted in January and February.
Virginia Sports Betting Handle 2021
Betting handle represents the total dollars wagered at a sportsbook, while revenue (AGR) marks the amount won by the sportsbooks after adjustments. The early betting handle numbers reported by the Virginia Lottery point to a bright future for the state’s mobile sports betting industry.
Virginia’s online sportsbooks took $265,778,306 in total wagers in February. That figure places the state as the seventh-largest mobile betting market in the US during the month, based on betting handle.
Revenues fluctuate month-to-month for sportsbooks, but betting handle stands as the most consistent indicator of the viability of a sports betting market. Virginia’s $265.7 million handle total puts the Old Dominion just behind Colorado ($258.2 million online handle) and ahead of Indiana ($241 million) for February.
Virginia’s market competes with some of the nation’s most established mobile sports betting states right out of the gate. As the Virginia Lottery continues to fill the 12 available online licenses, Virginia’s handle numbers should climb even further.
Virginia Sports Betting Revenue 2021
When a new mobile sports betting market goes live, the books generally post negative revenue numbers for the first few months after launch. Virtually all online sportsbooks offer welcome bonuses for new players, which include deposit matches, risk-free bets, match bets, and other promotions that award free betting credits.
Those credits count against adjusted gross revenue (AGR). Virginia’s online sportsbooks awarded $13,187,560 in promotional credits in February, and net revenue came in at (-$3,231,752) for the month.
AGR and state tax revenue will turn around as 2021 goes on, however. Based on betting handle numbers in the early weeks after launch. Virginia appears poised to contend as one of the most viable mobile sports betting markets in the US.