Virginia Sports Betting Revenue

Virginia’s legal sports betting market took off when it launched. It only took one month of growth to settle into sports betting’s seasonal rhythm. Part of Virginia’s success comes from legalizing both mobile and retail sports betting. But Virginia was also lucky enough to launch just before the Super Bowl and March Madness. Even when Virginia’s retail sportsbooks open, online sports betting will dominate the industry.  

Virginia’s current online sportsbooks include: 

The Virginia Lottery oversees the state’s sports betting industry. Both online and retail sports betting are permitted by state law. 

VirginiaCasinos.com updates this page each month with the latest sports betting revenue figures released by the Virginia Lottery.

Virginia Mobile Betting Tax Revenue 2022

 

Virginia tax revenue follows almost the same pattern as AGR. That’s to be expected since AGR is taxable revenue. However, tax revenue can be positive in months that AGR is negative, like Virginia’s first two months. That’s because individual sportsbooks can be profitable while others have losses. During the rest of the year, tax revenue follows the pattern AGR does closely. 

Virginia taxes online sports betting revenue at 15%. Tax revenue spiked to $4.3 million in November 2021 just like AGR did. Tax revenue was also high in January and March 2022 like AGR was. It’s a sign of healthy growth for Virginia’s sports betting industry, especially compared to where sportsbook revenue figures began.  

Bettors should expect tax revenue, AGR, and handle to dip until September, but reach higher levels than the summer before. 

Virginia Sports Betting Handle 2022

 

Betting handle is the amount of money bettors wagered. It’s often confused with gross revenue, the amount of money left over after sportsbooks pay winnings. Betting handle shows the size of a market’s sports betting industry.  

Virginia’s football season launch helped its handle grow quickly. After one month of growth, it locked into sports betting’s seasonal pattern. In mature markets, February handle drops because the Super Bowl is the only major event to bet on and the myriad football bettors don’t have anything to bet on. March Madness sees a handle spike because bettors with brackets have a stake in every game over three weeks. These patterns are revenue boosters for new markets who manage to launch as the peak season winds down. 

After handle dipped during the slow season, Virginia revenue picked back up at the start of football and basketball season. Virginia sportsbooks also acquired new customers since the industry’s inception. September 2021 handle jumped about $110 million from August. Football season began again, and handle reached new heights beginning in October. Further, February and March 2022 handle increased by over 50% year over year. 

Virginia’s growth in handle will set it up for a slow summer that will see higher handle in the summer of 2022 than the summer of 2021.

Virginia Adjusted Gross Sports Betting Revenue 2022

 

Gross revenue is the amount of money sportsbooks have leftover after they pay winnings out. Adjusted gross revenue (AGR) subtracts promotional credits out. Promotional credits are counted in handle, because bettors use promo credits when they first sign up. However, promotional credits are money that sportsbooks give customers to bet with. In Virginia’s first two months of sports betting, gross revenue for sportsbooks was negative. That’s because Virginia sportsbooks were offering generous welcome bonuses to attract customers. 

AGR largely follows the seasonal pattern that handle does. But it spikes in November. AGR in November was just under $30 million, almost twice as high as the next highest month before it, May 2022. This is a common pattern in other markets too. 

It could be because of NASCAR championships where sportsbooks cash in a disproportionate amount of futures bets. Futures have win rates for sportsbooks because of all the potential losses built into those bets. All the futures bets that sportsbooks don’t have to pay out are disproportionately profitable for them. That could be why November AGR and tax revenue is so high without a similar spike in handle.    

Virginia’s steady growth in AGR also shows how much less it has to rely on promotions. However, bettors can still see the impact of promotions on AGR in February’s dip. So, AGR follows a different pattern than handle. 

About the Author

Brian Spaen

Brian Spaen is an editor and contributor for Gaming Today. He has been a content writer and editor in various industries, including sports betting, environmental technology, and higher education. Brian is a graduate of Iowa State University and currently resides in Des Moines, Iowa. He’s an NFL and MLB fan.