Virginia Sports Betting Revenue
The Commonwealth of Virginia opened its virtual doors to sports bettors in late January 2021.
Sports Betting Dime is watching this developing market closely to see how it progresses. In particular, we’re analyzing monthly sports betting revenue reports from the Virginia Lottery. We’ll use this page to keep you informed with the most important details and insights.
Let’s take a closer look at the business of sports betting in the Old Dominion.
Latest Virginia Revenue News
Virginia is still in its early days of legal sports betting. Here’s what we’ve learned from VA financial reports thus far.
April 2021 – The Virginia Lottery reports $236 million wagered on sports in April, a decrease of approximately 22 percent from March. The state collected $1,652,147 in taxes, which is the highest of any month so far. Through four months of 2021, Virginia is on pace to handle more than $2.5 billion in wagers.
March 2021 – Virginians wagered over $300 million in March, officially breaking Tennessee’s record for the highest betting handle in a market’s initial three months. This is a remarkable achievement, considering the Virginia market was only live for 11 days in its first month. In March, wagers on the NCAA basketball tournament totaled $83,572,156, which is more than 27 percent of total wagers for the month. Considering no wagers involving Virginia colleges are allowed, this reflects the overall popularity of March Madness.
February 2021 – Virginia reports $265,778,306 wagered on sports in its first full month of legal sports betting. It is the fastest state to reach the $200 million monthly handle mark. In less than 45 days, Virginia sportsbooks have already surpassed $15 million in gross gaming revenue. Virginians wagered almost $20 million on Super Bowl 55.
January 2021 – Virginia reports a betting handle of $58,896,564 and gross gaming revenue of $3,586,077 in its first 11 days of legal sports betting. Sports fans in Virginia were clearly quite eager to get in on the action and were able to do so in time for Super Bowl 55. The Commonwealth collected $39,710 in taxes during this initial period.
Virginia Sports Betting Revenue: Month-By-Month Data
We’ll be keeping track of monthly Virginia sports betting financial reports. The table below displays the data available thus far.
Here’s what each number represents:
- Handle refers to the total amount wagered on sports.
- Revenue reflects the gross gaming revenue kept by sportsbooks after paying out winning bets.
- Hold percentage shows how much revenue sportsbooks kept as a function of the betting handle.
- State tax revenue displays taxes collected by the state and local jurisdictions.
|Month/Year||Total Handle||Revenue||Hold Percentage||State Tax Revenue|
|Total (since launch)||$865,173,638||$61,841,050||7.15%||$3,175,939|
The table above will be updated with the monthly figures provided by the Virginia Lottery. We’ll provide more analysis when more information becomes available.
Virginia Market Overview
To understand the sports betting market in Virginia, here’s some essential information to take into account.
Approximate State Population (2020): 8.59 million
In-state Pro Teams: None
Sports Betting Launch Date: January 21, 2021
Biggest Monthly Handle: $304,066,245 (March 2021)
Regulator: Virginia Lottery
Online/Retail Betting: Both
Tax Rate: 15 percent
High Expectations for Virginia
Industry insiders have high expectations for Virginia, especially after seeing the record-setting strong start in neighboring Tennessee and the $58 million wagered in Virginia in the markets first 11 days.
Looking at the first three monthly revenue reports, Virginia sports betting is officially off to the strongest start of any state to date. Here are the highest first three-month total handles for US sports betting markets outside of Nevada:
- Virginia – $628,741,115
- Tennessee – $523,644,523
- Indiana – $274,189,721
- New Jersey – $152,725,904
In just the third month of legal sports betting, Virginia surpassed $300 million in terms of monthly betting handle. It’s the seventh state to reach this mark but by far the fastest.
With six online sportsbooks live already and more on the way, Virginia clearly has enormous potential.
Heavily Celebrated Launch
The sudden launch of sports betting in Virginia took the sports betting industry by surprise, but sportsbooks were undoubtedly ready to begin vying for customer loyalty.
Virginia sportsbooks are required to disclose what they spend on bonuses and promotions. In the first 11 days, four VA sportsbooks (FanDuel, DraftKings, BetMGM, and BetRivers) declared over $6 million in combined promotional expenditures. Sportsbooks spending huge figures on customer acquisition shows how competitive they believe the Virginia sports betting market will be.
The Virginia Lottery anticipates that promotional expenses tied to new customer acquisition will decline considerably, increasing adjusted gross revenues and state taxes to a more sustainable level. There are additional sportsbooks expected to launch in Virginia soon, so we recommend bettors take advantage of early promotions while they can.
A gaming update issued by the Virginia Lottery in late April shows that FanDuel Sportsbook held a 53 percent market share from January through March 2021. It seems FanDuel made the most of its four-day headstart on other sports betting operators to acquire new customers.
DraftKings had the second-highest market share at 24 percent, while BetMGM maintained a 14 percent share.
Get Started Betting on Sports in Virginia
Can Virginia beat Tennessee’s scorching hot start? Will VA sportsbooks see a bump during March Madness or be held back because of state restrictions on betting on local college teams? Stay tuned!
Sports Betting Dime reviews and rates licensed sportsbooks in Virginia that offer online sports betting. We will keep you up to date with the latest promos, news, and rules and regulations about betting within the state. To find a sportsbook in another state, visit our US sports betting sites page to find one in a state that currently allows sports betting.
Have fun and enjoy the action out there!