Virginia reported that the state collected $545.1 million in sports betting handle in February this year, down more than 15% from January’s record-breaking total of $653 million. Regarding gross adjusted revenue, the Virginia Lottery registered $50 million in profits for the state’s betting operators. That revenue tally was down 32% from January.
While Virginia’s sports betting handle was down month-on-month, the state displayed impressive growth year-on-year compared to 2023. Betting handle was up significantly by more than 25% from last February’s wagering total of $433.8 million.
In terms of tax receipts, Virginia sports betting collected $6.3 million in February. So far, in 2024, Virginia has added more than $16 million in tax collections, up by more than $5 million from the first two months of last year.
Compared with January, Virginia had a quiet month in February. In January, 16 online sports betting operators combined for $73.4 million in gross profits, which equated to a hold rate of 11.4%. Retail locations had a hold rate of 14%, which resulted in $934,000 in profits from $6.6 million in sports betting handle.
Online Sports Betting Accounts For Over Half A Billion
While the Virginia Lottery does not disclose revenue figures by operator, 11 operators finished with a profit in February. Virginia saw $540.1 million in sports betting handle from the online market. Retail sportsbooks contributed a small portion of the total handle, at $4.9 million.
Regarding adjusted gross revenue, online sportsbooks in Virginia generated $44.1 million in profits. Retail books added just $289,548 to the bottom line.
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Virginia’s Betting Trends
Virginia’s betting patterns have been strong from the outset. In 2021, the state generated $3.2 billion in handle, with revenue of $285.9 million. At a hold rate of 8.9%, Virginia collected $20.3 million in tax.
In 2022, all those metrics rose. Total handle increased to nearly $5 billion with revenue of $481.2 million. The operator’s hold rate also improved to 9.79%, taking the total tax collection over $50 million.
In 2023, Virginia witnessed record-breaking numbers across the board as $5.53 billion was collected in wagers from the state’s sportsbooks. Annual hold hit double digits for the first time, which resulted in operators generating $560.2 million in revenue and tax receipts for the state rising to $72.3 million.
If the first two months of the new year are any indication, 2024 will break records again. Across January and February, close to $1.2 billion has been collected. With the state’s laws around promotional credits – operators can deduct such promos and bonuses from gross receipts only for the first 12 months in operation – taxable sports betting revenue will undeniably increase as a percentage, considering several of the state’s sportsbooks have completed a year in operation.
Betr and SuperBook are the only two online sportsbooks eligible to deduct bonus credits in the state. In February this year, a little over $20,000 was claimed in promotional credits. In February last year, $8 million was claimed in promotional credits.
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