Virginia Sportsbooks Collect $59 Million Handle in 11 Days Of January Launch
During the initial 11 days of legalized sports betting in Virginia, bettors placed wagers amounting to nearly $59 million at licensed sportsbooks.
On Monday, the Virginia Lottery revealed wagering figures for the month of January, pertaining to the commonwealth’s newly established sportsbook industry.
In a span of only 10 days and with a few operators, sports bettors in VA accumulated a remarkable $58,896,564 in wagers, also known as the monthly “handle.” If this trend continues, it is projected that the total for a complete 30-day period would surpass $160 million.
In its inaugural month, Virginia surpassed all states except for Tennessee in terms of total bets generated, drawing an impressive $131.4 million. Nevertheless, Virginia outshined Tennessee with its daily average bet amount.
This is a positive sign for the upcoming months in Virginia, particularly February, as the inclusion of Super Bowl betting will contribute to the monthly reporting figures.
VA sports betting handle and hold for January
In January, sportsbooks received bets totaling approximately $59 million, while payouts amounted to $55,310,487. As a result, the sportsbooks retained a “hold” of 6.08%, equivalent to $3,586,077. Though slightly below the industry average, this falls within the standard range.
Thanks to its partnership with the Virginia-based Washington Football Team, FanDuel Sportsbook became the pioneer operator in Virginia when it launched on January 21st.
On January 24th, DraftKings Sportsbook went online, followed by BetRivers on January 26th, and BetMGM on January 27th. William Hill, however, did not go online until February 3rd.
VA Lottery officials have announced their plans to issue additional permits for sportsbooks in the near future, indicating that more launches are imminent.
Play Virginia anticipates that Virginia’s sports-betting handle will experience a $5 billion increase in annual bets as the market reaches maturity.
Bonuses and promotions impacted the bottom line
In accordance with state law, a 15% tax is imposed on the revenue generated from sports betting. However, Virginia differs from other states by taxing the adjusted gross receipts (AGR) rather than the gross gaming revenue (GGR).
AGR is calculated by subtracting the sum of total winnings and authorized expenses, which include player bonuses and customer-acquisition promotions, from total wagers. It is uncertain whether the federal excise tax of .25% is included in the expenses.
Below is a comprehensive breakdown of the numbers:
| 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 |
Sportsbooks allocate significant resources towards offering bonuses and promotions to players, particularly when entering a new market. In fact, three out of four operators experienced a decrease in Average Gross Revenue (AGR), resulting in a combined loss of $3.2 million.
Nevertheless, according to VA Lottery officials, that number is expected to decrease significantly over time as the market reaches a more stable state.
Where VA sports betting taxes go
Sports betting was pitched by Virginia lawmakers and other stakeholders as a means to generate additional income.
As per the legislation, the state’s General Fund is entitled to receive 97.5% of the taxed hold.
The remaining 2.5% is allocated to the Problem Gambling Treatment and Support Fund, under the administration of the Virginia Department of Behavioral Health.
Virginia experienced a decline in revenue for January due to the negative Adjusted Gross Revenue (AGR). The lottery disclosed that only one sportsbook reported a taxable profit, which is indicated here:
- Total tax: $39,710.31
- General Fund: $38,717.55
- The current balance of the Problem Gambling Treatment and Support Fund is $992.76.
More Virginia sportsbooks to launch
Virginia could soon see an increase in the number of sportsbook operators with the potential passage of two bills.
The bills would specifically state that the mobile sports betting licenses for upcoming Virginia casinos will not be included in the limit of 12 licenses exclusively for mobile platforms.
The Portsmouth casino has formed a partnership with BetRivers, while the Danville casino has joined forces with William Hill Virginia.
Furthermore, in relation to the remaining 10 exclusively online licenses, Virginia legislators would prioritize and give significant consideration to sportsbook operators that include minority participation.
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