Virginia sports betting revenues surge to $60M in May amid increased wagering, seasonal sports action

Virginia's sports betting market saw growth in May, with operators earning $60 million in adjusted gross revenue (AGR), an increase from $42.5 million in May 2023, according to the Virginia Lottery's latest report. Bettors placed a total of $505.6 million in wagers, a 25.2% rise compared to the previous year.

Although there was a slight dip in handle and revenue from April, this is in line with seasonal variations in the sports calendar. April’s higher figures were boosted by the NCAA basketball semi-finals and finals, with this year’s women’s tournament drawing unprecedented betting activity.

However, May still offered plenty of events for bettors to wager. The month featured the beginning of the NBA and NHL playoffs and regular-season baseball, contributing to the monthly figures.

The win rate for Virginia's betting operators was 11.9% in May, maintaining a consistent trend of double-digit holds since sports betting launched in the state in January 2021.

Out of the total AGR, $53.6 million was taxable, as operators deducted over $6 million in promotions and other allowances. Initially, operators could deduct promotional play indefinitely, but regulatory changes in June 2022 limited these write-offs to the first year of a platform’s operation.

Currently, only Betr, which launched on September 6, 2023, and Fanatics, which began on November 21, 2023, are eligible for promotional write-offs.

The state collected $8.1 million in tax revenue for May, including $202,184 allocated to problem and responsible gaming initiatives. By law, Virginia directs 2.5% of its sports betting tax revenue to support these programs.

The Virginia Lottery’s report does not detail performance by individual operators or specific sports. However, it did indicate that 11 of the 14 active operators posted positive AGR for the month.

Virginia is the ninth-largest state in the U.S. with legal online sports betting. By comparison, in New Jersey, the next closes in size, bettors wagered $801.5 million in May, generating $78.8 million in gross gaming revenue.