Virginia Posts Nearly $235M in June Sports Betting Handle
The Virginia sports betting industry saw a rise in handle for June but had a slight drop in adjusted gross revenue.
For June, bettors wagered a total of about $235 million, a 3.5% increase from May’s $227 million. The gross operator win was $22 million, but the adjusted gross revenue (AGR) for June was about $14.9 million, down 5% from May’s $15.7 million. Following the drop in AGR, tax collections were also smaller. The sports betting taxes were $2.27 million in June, down 4.5%.
Virginia allows operators to deduct certain customer acquisition costs in arriving at taxable totals and operators reported nearly $5 million in bonuses and free-play incentives. Virginia customers may have felt they needed those promotions and bonuses to help offset what amounted to a 9.37% operator hold.
Only online sports betting is live in Virginia so far, although casinos with retail sportsbooks are on the way. Tennessee sports betting is the other state with an all-mobile market because casinos are not legal there.
In Virginia’s June report, the seven licensed operators listed were FanDuel Sportbook in partnership with the Washington Football Team, DraftKings Sportsbook, BetMGM, BetRivers, William Hill/Caesars, Wynn and Unibet.
Three others are approved, including Golden Nugget and Barstool Sportsbook, and both could go live in August, according to an update at the last Virginia Lottery board meeting. Bally’s is the other.
Virginia Sports Betting Handle & Revenue, June vs. May
|Change||Up 3.5%||Down 4.9%||Down 4.5%|
VA Tax Rate is 15%
In the commonwealth, there’s a 15% tax on sports betting activity based on each permit holder’s adjusted gross revenue. Virginia doesn’t break down its sports wagering financial figures by individual operators.
June was the fifth full month that Virginia reported sports wagering financial numbers since sports betting started early this year. Legal sports betting launched in the commonwealth on Jan. 21. Through the end of June, bettors had wagered more than $1.3 billion (known as handle) on everything from golf, football and motorsports to soccer and basketball. Total AGR has been $49.3 million and total taxes have been about $7.8 million.
From taxes, there’s also a financial set aside for problem gambling treatment and support. In June, that amounted to nearly $57,000 and overall, it’s been more than $195,000.
Operators have pursued customers aggressively in Virginia. To date, bonuses and promotions have been about $45.5 million, not far from the adjusted gross revenue figure of $49.3 million. In the last few months, the bonus/promotion spend appears to have been leveling off from $5.5 million in April to $5.2 million in May to about $5 million in June.
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