Virginia Reports Gambling Revenues Rise By Over 25% For February

In February, Virginia witnessed a surge in gambling revenues, with a 26% increase compared to the same period last year.

Virginians placed bets totalling $545.1 million in February, representing a 25.6% increase from the previous year. The surge in betting activity demonstrates the strong demand for sports wagering in the state.

Sportsbooks operating in Virginia paid a total of $6.3 million in taxes to the state. These tax payments are calculated based on 15% of the adjusted gross revenue (AGR) generated by the operators. The Virginia Lottery wagering revenue report revealed that 11 operators achieved a net positive AGR during the month.

Mobile betting continues to be the preferred method for Virginians, accounting for a significant portion of the total handle. In February, mobile betting amounted to $540 million, while bettors wagered a combined $4.9 million at retail locations. This trend underscores the convenience and accessibility of mobile platforms, which have gained popularity among users.

Promotions and deductions have shown a notable decrease in recent times. In response to this trend, Virginia Governor Glenn Youngkin proposed a 12-month sunset on promotional deductions in his budget. This move aims to regulate the use of promotions by operators and ensure a level playing field in the market.

In 2023, four new operators launched their platforms in Virginia, contributing to the vibrant gambling landscape of the state. Bet365, Betfred, Betr, and SuperBook entered the market, expanding the options available to bettors. These new entrants have added diversity and competition to Virginia’s sports betting ecosystem.

Among the operators, Bet365 and Betfred have already reached the end of their timeline for deducting promotions. This leaves only Betr and SuperBook with the ability to continue deducting promotional play. If no other operator enters the market in 2024, none will be entitled to deduct promotional expenses. This change in the landscape will have an impact on the promotional strategies of operators going forward.

While February witnessed remarkable growth, handle, AGR, hold, and tax payments were lower compared to January. Sportsbooks recorded an adjusted win percentage of 10.34% in January, paying $9.9 million in taxes, according to Sports Handle’s revenue and tax database. This comparison highlights the month-to-month fluctuations common in the industry.

The Virginia Lottery does not provide detailed information regarding the performance of individual sportsbooks or specific betting markets in its revenue reports. The focus of these reports is to offer a comprehensive overview of the state’s gambling industry as a whole. This approach allows for a holistic understanding of the industry’s growth and performance.