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Much like other legal sports betting jurisdictions in the US, May wasn’t too kind to Virginia.
Although Virginia sports betting handle was up 14.9% year-over-year, handle was down 5.2% month-over-month. However, with an 11.93% operator win percentage in May, Virginia has now gone 11 straight months with a percent hold over 9.1%.
Virginia sports betting experiences May dip in handle
The recent data from the Virginia Lottery shows Virginians wagered $403.7 million between May 1 and May 31, 2023.
Although the handle is down from the $426 million generated in April, this is the ninth consecutive month Virginians have gambled over $400 million in a single month.
For the month, retail and online sports betting operators paid almost $355.6 million in wagers, translating to over $42.5 million in adjusted gross revenue (AGR).
- Sports betting handle: $403.7 million
- Customer wins: $355.6 million
- AGR: $42.5 million
Overall, sportsbooks managed to surpass $1 billion in gross revenue since betting became legal in Jan. 2021. The state joins New York, New Jersey, Nevada, Illinois, Indiana and Pennsylvania as the only state to reach the billion-dollar-revenue milestone.
In addition, Virginia, along with Arizona and Michigan, topped $10 billion in sports betting handle earlier this year.
2023 tax revenue passes $30 million
As for taxes, the Old Dominion state received $6.3 million in tax revenue from the 16 sports betting operators. For 2023, total tax revenue now stands at over $30 million.
The tax is based on each permit holder’s AGR, defined as the total bets minus total winnings and other authorized deductions. Per Virginia sports betting law, 97.5% goes to the state’s General Fund, and 2.5% goes into the Problem Gambling Treatment and Support Fund.
- General Fund: $6.1 million
- Problem Gambling: $157,132
- Total: $6.3 million
Despite the monthly slump, online sports betting remains a popular option for customers. Although mobile sports betting handle was down 5.3% from April, it still accounted for $399.96 million in handle for May.
Brick-and-mortar sportsbooks experienced a handle increase from $3.5 million in April to $3.7 million in May. Retail sportsbooks reported nearly $700,000 in adjusted gross revenue for the month.
