A Look At Virginia’s Staggered But Successful Sports-Betting Debut

Last week, the commencement of legal sports betting in Virginia was marked by the participation of industry giants FanDuel and DraftKings, along with the unexpected inclusion of the Washington Football Team.

By the time the market reaches maturity, Virginia is anticipated to host approximately 20 sportsbooks, both online and brick-and-mortar, operating across the commonwealth.

Nevertheless, during the initial weekend of regulated sports betting, the top two renowned names in the industry fiercely competed for a larger portion of the market. However, there is another colossal player in the industry who is prepared to enter the game.

However, there was still some confusion that arose as a result of the staggered rollout of the commonwealth, as well as the lack of transparency surrounding the permitting process.

FanDuel and WFT Lead the Pack

FanDuel and the Washington Football Team were granted the initial temporary permit for sports betting by the Virginia Lottery. The permit was issued on Thursday, January 21, and both entities wasted no time in launching their operations on the same day.

Because Virginia lawmakers prioritized operators that collaborated with Virginia-based pro sports teams, they were the first sportsbooks to go online. The presence of the WFT’s head offices and indoor training facility in Ashburn, Virginia, played a significant role in this decision.

On Sunday, DraftKings, a major contender in the regulated US sports betting industry, also made its debut.

On the very day Crown Virginia Gaming, the parent company of DraftKings, obtained its temporary permit, it wasted no time in launching its operations.

Nevertheless, another prominent sportsbook is closely following suit. BetMGM was also granted a permit by the VA Lottery on Sunday; however, it has not yet gone live as of Tuesday morning.

A total of 25 companies have submitted applications for sports betting permits in Virginia. Lotto officials informed Play Virginia that several of these companies are expected to be operational and ready to accept wagers by the time Super Bowl LV takes place on February 7th.

A Good Weekend for the Sportsbooks

After waiting for their opportunity to place legal wagers, Virginia sports bettors were finally granted the chance. Regrettably, the outcome was not in favor of these customers, as the sportsbooks emerged victorious during the weekend. Thanks to the major sporting events that took place, the bookies triumphed over the bettors in their ongoing battle.

Conor McGregor made his highly-anticipated return to the cage on Saturday, during the live launch of FanDuel in Virginia. The event, UFC 257, unfolded in Abu Dhabi. Despite being the heavy favorite with odds of -330, McGregor faced an unexpected defeat as Dustin Poirier delivered a stunning second-round TKO to secure a remarkable upset.

The upset was a positive outcome for the sportsbook, as stated by FanDuel. A significant 83% of the betting handle for the fight was placed on McGregor, and the sportsbook accepted numerous high-five-digit bets on the Irishman.

Nevertheless, FanDuel experienced a setback due to a promotional offer called the “odds boost” for UFC 257. FanDuel officials disclosed that they had to shell out $2 million to bettors who took advantage of the Poirier-specific super boost. This boost offered a payout of +750 for a KO/TKO upset.

DraftKings followed FanDuel into Virginia the next day, perfectly timed to coincide with the ongoing NFL Playoffs featuring the AFC and NFC championship games. The Tampa Bay Buccaneers emerged victorious in the NFC, defeating the Green Bay Packers with a score of 31-26. Meanwhile, the Kansas City Chiefs claimed victory in the AFC Championship, triumphing over the Buffalo Bills with a final score of 38-24.

Altogether, 74% of the bettors from both sites favored the Packers to win. However, the Bills only garnered about a third of the support, resulting in the sportsbooks facing some losses due to the Chiefs’ triumph.

Sports bettors in VA are gearing up for the ultimate sports betting event, Super Bowl LV, which will be held on Sunday, Feb. 7. The Chiefs are favored by -3 points, and the total score is set at 56. Just like every Super Bowl, sportsbooks offer a variety of prop bets for players to choose from.

Prior to the Super Bowl, sports bettors have a wide range of betting opportunities at their disposal, including the NBA, NHL, college basketball, PGA, and various other sports.

Players Flock to Legal Markets in Virginia, Michigan

Both Virginia and Michigan simultaneously launched their sportsbooks, commencing the acceptance of wagers last week. Evidently, players were eagerly prepared to place their bets.

Over the weekend, more than 400,000 legal sports-betting accounts were added in VA and MI, as reported by GeoComply, a provider of geolocation services for the industry.

In total, GeoComply reported over 30 million geolocation transactions across the United States’ 17 legal and operational sports-betting markets, including 16 states and Washington, DC. Remarkably, a significant portion of these transactions, approximately one-fourth, were accounted for by Virginia and Michigan alone.

The significant rise of legal sports betting in various states has resulted in a 260% surge compared to the same weekend in 2020.

According to Seth Palansky, the Vice President of Corporate Social Responsibility at Conscious Gaming,

Over the past weekend, a significant number of individuals in Michigan and Virginia engaged in legal online betting, amounting to hundreds of thousands. This noteworthy occurrence serves as evidence that Americans are willing to forsake illegal websites and traditional bookies found on street corners. Instead, they are placing their confidence in accountable companies that offer substantial consumer protections and responsible gaming measures.