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.
Seven of sports betting’s biggest brands offer mobile sports betting in Virginia as of May 2021. 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.
March marked a significant momentum shift toward profitability for Virginia’s mobile sports betting apps. Online sports betting taxes hit the $1 million monthly thresholds, and that began a trend of increased tax revenue collection for the state in three consecutive months.
May marked an all-time high for monthly tax revenue in the short history of mobile sports betting in Virgnia. The state took $2,381,116 in online sports wagering taxes in May 2021.
The May totals brought Virginia’s online sports betting tax total to $5,667,054 for the year.
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 first few months of revenue reported by the Virginia Lottery indicate a healthy future for sports betting in the Old Dominion. With the latest numbers factored in, Virginia cleared $1 billion in online betting handle at the end of May 2021.
The state’s mobile sportsbooks took $226,963,573 in bets in May. That number marks a slight dip month-to-month, with May handle dropping 4% when compared to April.
Revenues fluctuate month-to-month for sportsbooks, but betting handle stands as the most consistent indicator of the viability of a sports betting market.
Online betting handle figures from Illinois are still pending for May 2021. Virginia will presumably come in as the eighth-largest online sports betting market in the US for May, with handle used as the metric.
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 posted negative net revenues in January and February as a result.
That trend turned the corner in March, however, which yield the first month of overall combined positive AGR for Virginia’s online sportsbooks.
May 2021 marked an all-time monthly high for online sports betting revenue in Virginia. The state’s seven mobile sports betting apps brought in a combined $15,663,201 in adjusted gross revenue.
According to the Virginia Lottery, only four of the state’s seven online sportsbooks posted positive net revenues in May. When all seven brands climb out of the customer acquisition phase, a surge in monthly revenue should come forth as a result.