Virginia’s Betting Handle, Revenue Drops in February

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.

Related Pages: What States Have Legal Sports Betting? | North Carolina Sports Betting | How to Bet on March Madness

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.


About the Author
Nikhil Kalro

Nikhil Kalro

Nikhil Kalro covers the sports betting industry and revenue reporting at Gaming Today. Much of his work analyzes state revenue information, including betting activity and revenue for individual states and sportsbook operators. In addition, Nikhil provides news updates on the gambling industry itself, including product launches and legal issues. Nikhil’s previous experience includes five years with ESPN.

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