The true viability of the Virginia sports betting market becomes more apparent with each passing month. May 2021 marked the third straight month of increased online sports betting tax revenue for the state.
Adjusted gross revenue (AGR) and online sports betting tax collection both hit new monthly highs in May. The Virginia Lottery released the May 2021 sports betting revenue figures on Thursday, and the numbers point to steady growth and still untapped potential for the state’s sports betting market.
VIRGINIA SPORTS BETTING REVENUE May 2021
|Overall Betting Handle||Adjusted Gross Revenue||Sports Betting State Tax|
|May|| $226,963,573 ||$15,663,201||$2,381,115.69
Virginia bettors placed a total of $226,963,573 in online wagers for May. That number marks a slight month-to-month dropoff, with overall betting handle down 4% against April.
Adjusted gross revenue came in at $15,663,201 for the month, a new high for the Virginia sports betting industry. Online sportsbooks have generated $34,420,986 in net positive revenue in 2021.
From that $34.4 million in AGR, the state has collected $5,557,054 in taxes so far in 2021. Those numbers project to 2021 totals of $82.6 million AGR and $13.3 million in 2021 state tax revenue by the end of the year.
The Virginia Lottery reported that only four of the state’s seven mobile sports betting brands posted net positive AGR in May. All Virginia sportsbooks combined allocated $5,168,732 in bonus and promotional credits in May.
Promo credits count against AGR, and after factoring in bonuses, three of Virginia’s online sportsbooks ended up in the red in terms of AGR in May. That trend will subside at some point, however, and overall revenues from Virginia should reflect accordingly.
For now, all legal sports betting in Virginia is conducted through the state’s seven online sportsbooks. Legal retail sports betting will debut in the state at some point as well.