A Virginia Lottery report on October sports betting numbers is out, and the numbers revealed a record revenue haul for the state's best sportsbooks, and a new high water mark in terms of monthly handle.
Virginia maintains its spot among the top-10 legal sports betting states in America. Virginia sports betting apps and the state's retail providers and betting sites, like all other jurisdictions, benefitted in October from a full schedule of NFL and college football action, as well as the start of both the NBA and NHL 2023-24 campaigns.
Thanks to October sports betting in the Old Dominion, Virginia became the 10th state in America to eclipse the $12-billion lifetime handle for its sports betting industry.
Nearly $571.4 million handle
Old Dominion bettors spent nearly $571.4 million with Virginia sports betting sites and retail providers. Virginia sports betting apps were responsible for the vast majority of October sports betting activity unsurprisingly, accounting for about $565.6 million of the total. Retail made up the remaining $5.7 million.
The $571.4 million represents a handle record for the state, which offers Virginia sportsbook promos. It's also a 9.8% month-over-month increase from the $520.3 million September handle, and about an 8.2% year-over-year rise from the $528 million spent at state sportsbooks in October 2022. The October 2022 handle was the previous Virginia sports wagering record haul, with much of that coming from the best sports betting apps.
$4.3 billion has now been wagered on sports in Virginia during 2023.
Gross revenues top $60 million for the first time
Virginia sportsbooks' bottom line benefitted from the record state handle. Gross operator revenues for the month set a record while eclipsing the $60-million mark for the first time ever.
The Virginia lottery reported $64 million in combined mobile and retail gross operator revenue, topping the previous record of $57 million which was set in November 2022. After deductions and paying out nearly $507.4 million in winnings, Virginia's best sportsbooks made $56.4 million in adjusted revenues.
The state was able to collect $8.55 million in taxes from the adjusted profits. 97.5% of that will go to the state's general fund, with the remaining total headed for Problem Gambling Treatment in Virginia.
Through the first 10 months of 2023, gross operator revenues for Virginia sportsbooks now stand at $453.6 million, 21.6% higher than the same 10-month period in 2022. Year-to-date taxable revenue stands at $384.2 million, 54.6% higher than the same period last year.
The Virginia October hold rate came in at 11.2%, which is the highest since May, and about 0.8% higher than in September.
Hold rate in Virginia remains high
Virginia sportsbooks have been among the luckiest in the country while frequently posting double-digit holds. With the 11.2% reported in October, there's now been eight straight months when Virginia sports betting providers have produced a hold rate over the 10% plateau.
Virginia sportsbooks have managed a hold rate of 10% or more 17 times in their 34 months of operation.
The combined hold for Virginia sportsbooks so far in 2023 is 10.5%.
The high hold rates that Virginia sportsbooks enjoy have led to higher net revenues, and ultimately $58.4 million in state taxes to be collected for needy programs in 2023 alone. Tax contributions are $21.4 million ahead of the amount collected in the first 10 months of 2022.