The first full month of business is in the books for Virginia’s mobile sports betting industry, and the Old Dominion appears poised to emerge as a major sports wagering hub in the US.
Virginia’s online sportsbooks generated $265,778,306 in February handle. One of the latest US states to introduce sports betting, Virginia launched the first of its mobile wagering apps on Jan. 21.
The Virginia market will eventually include retail sports betting as well, with up to five land-based casinos proposed for operations in the state. Virginia functions as an online-only sports betting industry for now, and the February handle numbers put the state in place as a potential future top-five mobile sports betting market in the states.
Virginia Sports Betting Revenue February 2021
|Overall Betting Handle||Adjusted Gross Revenue||Sports Betting State Tax|
The freshly-released numbers from the Virginia Lottery place Virginia as presumably the No. 7 mobile sports betting market in the nation for February based on handle. Virginia came in just behind Colorado ($258.2 million) and ahead of Indiana ($241 million), a pair of established online sports betting states.
Virginia’s mobile sportsbooks posted a net loss of (-$3,231,752) in revenue for February, as customer acquisition promo credits count against adjusted gross revenue. Similar to Michigan, which also launched mobile wagering in January, Virginia’s online sportsbooks launched with an aggressive marketing strategy, bringing in customers with pre-launch promotions and other welcome bonuses.
The negative revenue trend will turn into profit as the months progress in 2021. Five online sportsbooks were up and running in Virginia as of the end of February.
DraftKings Sportsbook, FanDuel Sportsbook, BetMGM, BetRivers, and William Hill bring five of sports betting’s most viable brands to the Virginia industry. Only one of those books turned a profit in February, and that positive net revenue yielded $300,593 in tax revenue for the state.
Virginia taxes adjusted gross revenue at 15%. The Virginia Lottery press release states that Super Bowl LV, which played out on Feb. 7, produced $19,559,701 in betting handle.
That figure makes up just over 7% of all February wagers in Virginia. That number bodes well for the Virginia market, as markets outside of Super Bowl betting generated plenty of interest among Virginia bettors.
WynnBET Sportsbook joined the Virginia market in March, and next month’s revenue numbers will reflect totals from six total mobile wagering platforms.