Virginia Sports Betting Revenue
Virginia Sports Betting Revenue
With the launch of sports betting in Virginia, it is crucial to monitor the performance of this industry. The Virginia Lottery holds the responsibility of providing monthly revenue statistics for both online and retail sportsbook activities. Significant figures in this report encompass:
The handle refers to the total amount of money bet on sports across all sportsbooks. For instance, if the handle for a month is $100 million, it indicates that the sportsbooks collectively received $100 million in wagers.
In sports betting, the concept of revenue differs slightly from its traditional business definition. Instead, it is measured by the Gross Gaming Revenue (GGR), which signifies the remaining sum of money after sportsbooks have settled all bets for the month. For instance, if sportsbooks paid out $92 million in winnings out of a total of $100 million in bets, the GGR (also referred to as hold) would amount to $8 million.
Adjusted Gross Revenue (AGR) is an additional revenue category that factors in deductions from Gross Gaming Revenue (GGR). These deductions include the federal excise tax, which amounts to 0.25% of the handle, as well as promotional funds distributed through deposit bonuses or free bets. In Virginia, sportsbooks subtract these deductions from the GGR to arrive at the taxable amount regulated by the state.
In Virginia, the tax rate on AGR for sports betting is 15%. Out of this, 97.5% of the tax revenue is allocated to the General Fund, while the remaining 2.5% is specifically designated for problem gambling support.
All-time Virginia sports betting numbers
Let’s take a glance at the key figures from VA sports betting.
The overall historical amount of sports betting wagers placed in the state of Virginia.
The cumulative revenue generated from sports betting throughout Virginia’s history.
The cumulative amount of taxes collected from sports betting in Virginia.
Funds allocated for promoting responsible gambling from tax revenue.
Latest Sports Betting Revenue Reports
Lifetime Virginia sports betting numbers
This information was last updated on April 1, 2024.
| Month | Handle | GGR | Hold % | Promos | Other deductions | AGR | Taxes |
|---|---|---|---|---|---|---|---|
| February 2024 | $401,889,135 | $27,498,133 | 6.8% | $15,816,234 | $3,797,649 | $7,884,250 | $7,884,250 |
| January 2024 | $485,544,417 | $39,050,067 | 8.0% | $16,850,981 | $3,978,519 | $18,220,567 | $2,876,609 |
| December 2021 | $426,596,891 | $31,515,015 | 7.4% | $17,051,709 | $4,339,908 | $10,123,398 | $1,729,130 |
| November 2021 | $402,621,132 | $48,337,037 | 12.0% | $14,993,073 | $3,417,267 | $29,926,697 | $4,233,167 |
| October 2021 | $427,320,306 | $30,160,385 | 7.1% | $15,805,261 | $4,569,424 | $9,785,700 | $1,746,204 |
| September 2021 | $293,851,531 | $30,929,243 | 10.5% | $17,422,068 | $3,172,781 | $10,334,395 | $1,557,498 |
| August 2021 | $182,418,252 | $17,967,427 | 9.9% | $6,868,639 | $2,410,724 | $8,688,064 | $1,378,539 |
| July 2021 | $161,901,955 | $19,965,556 | 12.3% | $4,375,872 | $2,898,664 | $12,691,020 | $1,864,433 |
| June 2021 | $234,943,435 | $22,006,296 | 9.4% | $4,983,544 | $2,125,855 | $14,896,898 | $2,273,995 |
| May 2021 | $226,963,573 | $23,173,549 | 10.2% | $5,168,732 | $2,341,616 | $15,663,201 | $2,381,115 |
| April 2021 | $236,432,523 | $19,442,317 | 8.2% | $5,529,294 | $2,532,886 | $11,380,137 | $1,652,147 |
| March 2021 | $304,066,245 | $26,573,877 | 8.7% | $10,340,533 | $2,388,332 | $13,845,012 | $1,183,487 |
| February 2021 | $265,778,306 | $12,238,730 | 4.6% | $13,187,560 | $2,282,972 | ($3,231,752) | $300,594 |
| January 2021 | $58,896,564 | $3,586,077 | 6.1% | $6,343,077 | $478,612 | ($3,235,612) | $39,710 |
| Total | $4,109,224,266 | $352,443,759 | 8.6% | $154,736,576 | $40,735,209 | $156,971,974 | $24,622,911 |
Where does Virginia sports betting tax money go?
Below is a breakdown of the allocation of tax money, which also includes the specific amount designated for problem gambling support.
| Time Period | Taxes collected | Money to General Fund | Money for Problem Gambling |
|---|---|---|---|
| February 2024 | $1,406,280 | $1,371,123 | $35,157 |
| January 2024 | $2,876,609 | $2,804,693 | $71,915 |
| December 2021 | $1,729,130 | $1,685,902 | $43,228 |
| November 2021 | $4,233,167 | $4,127,338 | $105,829 |
| October 2021 | $1,746,204 | $1,702,549 | $43,655 |
| September 2021 | $1,557,499 | $1,518,561 | $38,937 |
| August 2021 | $1,378,540 | $1,344,076 | $34,463 |
| July 2021 | $1,864,433 | $1,817,822 | $46,611 |
| June 2021 | $2,273,99 | $2,217,146 | $56,850 |
| May 2021 | $2,381,116 | $2,321,588 | $59,528 |
| April 2021 | $1,652,147 | $1,610,843 | $41,304 |
| March 2021 | $1,183,487 | $1,153,900 | $29,587 |
| February 2021 | $300,594 | $293,079 | $7,515 |
| January 2021 | $39,710 | $38,718 | $993 |
| Total | $24,622,911 | $24,007,338 | $615,573 |
Virginia sports betting: How much money will be bet annually?
In the expanding US sports betting industry, the leading figure that captures attention is the top-line number. Several states have witnessed monthly wagers reaching billions, while the total sports bets placed in the US since the federal ban was lifted in 2018 amount to tens of billions.
Given these circumstances, we estimate that Virginia’s annual handle could exceed $7 billion dollars at market maturity, potentially reaching as low as $6 billion or less on the lower end of outcomes. However, it is important to note that the $7 billion milestone would not be achieved immediately, but rather several years into the future when Virginia’s online sports betting market approaches maturity.
What is the way to reach our destination?
Virginia sports betting vs. NJ sports betting
Initially, we examine the strategies implemented by other states. Nevertheless, it is important to note that no state, including Nevada, where online betting has gradually evolved, has achieved full maturity in online sports betting. Furthermore, the COVID-19 pandemic caused the suspension of US sports during a portion of 2020, further complicating the prediction of a fully developed and thriving market.
Looking to New Jersey is the most advantageous option, as it is a state that allows legal sports betting and has a population slightly larger than Virginia’s 8.5 million residents.
New Jersey’s handle exceeded $4.5 billion in 2019, but that was not its peak. In August 2020, when sports resumed, the state achieved a new milestone with a monthly handle surpassing $650 million. At present, New Jersey is on track to reach an annual handle of up to $9 billion once the market is fully developed.
However, Virginia will not perform as excellently as New Jersey for various reasons.
- Online casinos in New Jersey contribute to the success of sports betting by cross-selling their games and driving increased wagering activity.
- At best, Virginia is expected to have roughly half the number of operators as compared to New Jersey, indicating a less extensive market in the state.
- New Jersey benefits from its proximity to the lucrative New York City market, which has significantly contributed to the state’s thriving sports wagering industry. On the other hand, New York has yet to pass legislation legalizing online sports betting. In a similar vein, Virginia has access to the Washington DC market and currently allows online sports betting. However, the monopoly app in DC named Gambet has been experiencing underwhelming performance.
Nevada serves as another intriguing example, generating approximately $5 billion in handle on a yearly basis. However, due to its smaller size, Nevada’s online sports betting market is not expected to be as thriving as the one anticipated in Virginia. The in-person registration requirement in Nevada has hindered its growth, unlike Virginia, which permits remote registration.
In theory, Virginia would be positioned between the two markets due to all of those factors.
Virginia sports betting revenue
Reverse engineering the handle allows us to determine the anticipated revenue that Virginia can expect. This process is relatively straightforward.
Historically, sportsbook operators have typically earned a modest percentage of the total handle, ranging from 5% to 8%. By considering the midpoint of 6.5% and applying it to a handle of $7 billion, we estimate that operators generate approximately $450 million in revenue.
The estimated revenue from sports betting, considering a thriving online industry, aligns closely with the commonwealth’s projection of approximately $462 million.
Virginia’s sports betting legislation is advantageous when compared to that of other states. The inclusion of reasonable fees and taxes, coupled with a potentially competitive market, is expected to greatly optimize the potential revenue generated. Additionally, Virginia has the potential to attract bettors from neighboring states that lack legal sports betting options or a competitive online betting sector.