The Virginia Lottery has published its report on sports betting in the state, presenting intriguing insights into the industry’s performance in June. While there was a 12% decline in the betting handle compared to May, the figures demonstrate a remarkable 25% year-on-year growth.
Overview:
In June, the handle for sports betting in Virginia reached $295.2 million, marking a 12% decrease from the previous month. However, this decline did not overshadow the significant progress made since June 2021, as the handle experienced a substantial 25% increase year-on-year. The 14 licensed sports betting operators in Virginia contributed to this growth, reporting $25.9 million in gross revenue.
Revenue Analysis:
Despite the positive growth in the handle, the gross revenue of sports betting operators in Virginia saw a sharp decline in June. Compared to May’s $42.5 million, the operators only generated $25.9 million, resulting in a notable decrease. The hold percentage for the month was 8.7%, lower than May’s 12.1%, but still higher than the low of 6.8% recorded in February.
Adjusted Gross Revenue (AGR):
After considering promotional credits and other deductions, sportsbooks in Virginia recorded an adjusted gross revenue (AGR) of $13 million in June, less than half of May’s $27.5 million. Promotional credits amounted to $7.8 million, indicating a decrease of 21.4% compared to the previous month. Deductions increased by 2% to reach $5.1 million.
Tax Receipts and Fund Allocation:
Virginia collected approximately $1.9 million in tax receipts in June, following positive adjusted revenue reported by seven operators. This amount represents less than 50% of the tax revenue generated in May. Since the legalization of sports betting in Virginia, the state has amassed $35.5 million in taxes for its General Fund, with a portion also allocated to the Problem Gambling and Treatment Fund.
Despite a decline in the handle and gross revenue for sports betting in Virginia during June, the industry continues to showcase strong year-on-year growth. The decrease in revenue can be attributed to various factors such as promotional credits and deductions. Nevertheless, the tax receipts generated highlight the ongoing financial benefits for the state, which has collected a significant amount in taxes since the legalization of sports betting. The data from the Virginia Lottery’s report provides valuable insights into the performance of the sports betting market and its contribution to the state’s economy.