States of Sports Betting, Part 3: Advice for all Virginia Stakeholders

Play Virginia recently interviewed writers from our network who specialize in sports betting in various states to gain insights into what has been effective and ineffective in those markets. With Virginia’s online sports betting market set to launch in a matter of weeks or possibly even days, we sought to learn from the experiences of other states and apply those lessons to benefit Virginia’s regulators, sportsbook operators, and sports bettors.

Today marks the end of our three-part series titled “States of Sports Betting.” In the previous two installments, we delved into the triumphs and disappointments experienced by various states. As we conclude this series, our writers will provide valuable advice to those involved in the sports betting scene in Virginia.

Sports betting advice for Virginia

After the US Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018, a few states were swift to seize the opportunity and launch their sports betting markets. However, Virginia will not be among the first states to do so.

However, Virginia is now seeking to establish its presence in a rapidly expanding multibillion-dollar industry.

As the national marketplace continues to develop, certain states have emerged as new dominant forces, while others have stumbled right from the start due to a range of mistakes and setbacks.

What steps should Virginia take to achieve success? How can the Virginia Lottery, sportsbook licensees, and VA sports bettors maximize the potential of this emerging market?

We have learned from writers who cover markets in other states that there is no one-size-fits-all approach. However, almost all of them agree that a simple and uncomplicated game plan is the most effective.

Joe Boozell from PlayIllinois succinctly summarized his sports betting advice.

He advised against making things too complex, encouraged the use of common sense, and emphasized learning from successful strategies in other markets while being cautious of exaggerated concerns.

About that betting ban on VA schools

The Virginia Lottery holds the utmost influence in establishing a thriving market, as it plays a pivotal role in creating a healthy environment. In the near future, Kevin Hall, the Executive Director of the VA Lottery, will disclose the sportsbooks that have been granted licenses. Subsequently, the market could become operational within a short span of time.

First and foremost, remember to keep in contact with the veterans.

Bill Gelman of PlayNJ suggests reaching out to David Rebuck, the Director of the New Jersey Division of Gaming Enforcement, to gather insights. Gelman highlights that New Jersey has consistently surpassed Nevada and other legal sports betting jurisdictions in terms of handle over the past four months. This achievement demonstrates the effectiveness of New Jersey’s system, making Rebuck an excellent resource for valuable information and intelligence.

Other writers specifically highlighted the unfortunate prohibition on betting on in-state colleges and universities in Virginia.

Jake Garza of PlayIndiana said that college basketball and football make up a significant portion of the state’s revenue, particularly in Indiana. He emphasized that by prohibiting these sports, the state is essentially harming itself.

Matt Schoch of PlayMichigan agreed.

The ban on sports betting implies that it is inherently illegitimate, which is not accurate. Michigan’s prohibition on prop bets involving individual college athletes is a sensible measure. However, if there were ever a major conspiracy related to sports betting, merely prohibiting bets on specific teams like the Virginia Cavaliers or Virginia Tech Hokies would have no impact. In fact, allowing regulators to monitor betting markets for any irregularities would help prevent potential fraud. Moreover, the state is forgoing potential revenue by disallowing bets on popular local teams.

Reconsider Virginia’s Olympic betting ban

Not only are Virginia schools affected by the commonwealth’s betting prohibition, but the ban also extends to the Olympics. Although many Olympic sports typically receive minimal betting attention throughout the year, the actual Olympic games witness a significant surge in interest, both in terms of viewership and betting activity.

Lawmakers and regulators should reconsider the ban on Olympic betting, as suggested by Derek Helling from PlayIA.

He stated that it would be unwise for the Virginia market to disregard the Olympics, similar to how Iowa chose not to allow betting on NBA and NFL Drafts. These events are widely recognized and closely regulated by international organizations, much like FIBA and FIFA competitions.

While corruption can be found, it is more commonly associated with the host cities of the Olympics rather than the actual competitions themselves.

Furthermore, similar to the ban on college betting, the limitations imposed on Olympic betting will only have detrimental effects on Virginia’s financial outcomes.

How Virginia sportsbooks can succeed

Indiana’s legal sports betting scene has transformed into a remarkable achievement. The state, known as the Hoosier State, has achieved an impressive feat by consistently setting new records for four consecutive months. Astonishingly, bettors placed wagers exceeding $1 billion in Indiana throughout the year 2020.

Although Indiana boasts professional sports teams and major NCAA Division I programs, Garza of PlayIndiana credits the Indiana Gaming Commission for contributing to the state’s overall success.

He advised, “In terms of advice for the Virginia Lottery, it’s important to maintain a flexible mindset. Be receptive to operators’ suggestions for engaging in diverse sports or events. Indiana greatly benefited from having numerous lesser-known betting options when mainstream sports were suspended due to the pandemic.”

Perhaps, by permitting bets on unconventional events, it is possible that a dependable niche betting community, similar to the one Colorado currently has with table tennis, could emerge.

Pennsylvania is another state experiencing a significant surge in sports betting. Since the resumption of sports activities after COVID-19 shutdowns in August, the state has consistently recorded a monthly handle of $171 million.

According to Katie Kohler from PlayPennsylvania, the sportsbooks’ online platforms play a significant role in the state’s success.

Customers benefit from a competitive market like the one in Virginia, as they have the freedom to explore other sportsbooks’ mobile apps or user experiences if they are dissatisfied with their current choice.

“It’s truly about the app,” she emphasized. “The app must be user-friendly, with easy navigation, and offer swift and uncomplicated deposit/withdrawal methods.”

A reminder for Virginia sports bettors

In terms of the bettors themselves, the writers offered some guidance on sports betting as well.

As previously mentioned by Kohler, the seamless functioning of sportsbook apps is crucial for attracting and maintaining a customer base.

Virginia bettors should remember this important information. If you are dissatisfied with your current sportsbook, there are plenty of other options available that will gladly accept your bets and offer you enticing benefits in return.

According to Kimberly Yuhl from PlayWV, competition has proven to be beneficial for the WV sports betting market. Despite concerns of customer base cannibalization, the market has witnessed growth with the addition of new operators. Contrary to expectations, customers in WV tend to have a preferred sportsbook and display loyalty towards it.

Operators should invest their money wisely by focusing on customer acquisition and platform innovation.

PlayNevada’s Marc Meltzer predicts that Virginia will provide a wide range of sportsbook options for bettors. Consequently, customers can anticipate receiving more favorable odds and reasonable limits for high-stakes players.

Competition fosters the creation of superior products that benefit customers. Having multiple outlets facilitates advancements in technology, increased promotional offers, and improved odds. Regrettably, many states prioritize tax revenue over these important factors. However, in the long run, offering better odds and fair limits will encourage people to continue playing, leading to a more enjoyable experience and increased spending. If the odds are unfavorable and a new customer quickly runs out of funds, it is unlikely they will return.

Be responsible

Sports betting is one of those rare industries that can simultaneously offer excitement and present numerous challenges.

Similar to any other vice, certain players have the genuine possibility of developing an addiction.

Although regulators and sportsbooks have a responsibility to ensure safe and responsible gaming, it is not always guaranteed. Therefore, it is advisable for bettors, especially those new to sports wagering, to adopt a cautious approach.

In order to ensure a safe market, the responsibility lies with all stakeholders involved, including regulators, operators, and the players themselves. It is important for new bettors in Tennessee, where a sports-betting marketplace recently began, to be aware of certain issues that have already arisen.

Alec Cunningham of PlayTenn emphasized the crucial need for well-established and adequately funded responsible gambling initiatives in states where most other gambling activities are banned. He pointed out that prior to the introduction of sports betting in Tennessee, the state lottery was the only permitted form of gambling. Consequently, Tennessee has witnessed a notable increase in the number of calls made to its problem gambling hotline.

It remains to be seen if our state possesses the necessary resources to effectively tackle these emerging issues.