Virginia Sports Betting Revenue

Virgnia’s legal sports betting industry hit the halfway point of 2021 at the end of June. Seven online sportsbooks operated in Virginia in June, and up to a dozen operators could eventually offer mobile sports betting in the Old Dominion.

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

Virginia operates as an online-only sports betting state for now, with land-based casino across the state still under construction. VirginiaCasinos.com updates this page each month with the latest sports betting 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.

The first two months of sports betting in Virginia saw the state’s online sportsbooks post combined net losses, due to welcome bonuses counting against revenue. The state only takes taxes from sportsbooks that post net positive revenues.

From March 2021 onward, the state tax collection on mobile sports betting revenue has picked up significantly. Virginia reaped $2,273,995 in total tax in June, bringing the 2021 total to $7,831,050.

As the fall sports season approaches and more operators enter the market, the state’s piece of the online sports betting pie should continue to grow.

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 added to that total in June, taking $234,943,435 in bets for the month. That number puts Virginia in close contention with other thriving sports betting states, like Michigan, Colorado, and Indiana.

Revenues fluctuate month-to-month for sportsbooks, but betting handle stands as the most consistent indicator of the viability of a sports betting market.

The seven online sportsbooks operating in Virginia in June included William Hill, FanDuel Sportsbook, BetMGM, BetRivers, WynnBET, Unibet, and DraftKings Sportsbook.

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.

Virginia sportsbooks followed with another strong month in June, generating $14,896,898 in adjusted revenue.

About the Author

Geoffrey Fisk

Geoff Fisk is a San Diego-based freelance writer, specializing in the poker and gambling industries. He’s written for numerous platforms and has traveled the globe as a live poker tournament reporter. Geoff’s interests include the legal online poker industry in the U.S. and abroad.