Virginia Returns to Form in Sports Betting After February Slump

The Commonwealth of Virginia emerged from an underwhelming February legal sports betting period with a strong March. Despite home state teams exiting March Madness in the first round, the state's best sports betting sites still performed admirably, and topped the $500 million mark for the fifth time in the last six months.

Even better news is that revenue for Virginia's best sportsbooks, along with the handle, significantly grew month-over-month. Year-over-year growth for the Virginia legal sports betting industry was also strong in March - just in time for the annual spring/summer legal sports betting slowdown. 

Getting into the numbers

The Virginia Lottery reported a $511.6 million sports betting handle in March, despite the University of Virginia and Virginia Commonwealth University underwhelming performances in the NCAA Basketball tournament. The tournament helped Virginia's best March Madness betting sites eclipse the $500 million mark for the fifth time in the last six months.

$511.6 million represents a 17.9% increase from the $433.8 million reported in February and a 9% increase from the $469.5 million wagered in the state during March 2022.

Virginia's online betting sites dominated the overall handle, taking in just north of $507 million or 99.1% of the overall $511.6 million handle.

March's betting figures represent the end of the first quarter for the Virginia legal sports wagering scene. Sports betting in the state from January to the end of March 2023 was up 7.5% from the same three-month period last year.

Impressive Virginia sportsbook revenue

Not only did Virginia's overall handle climb in March, but the revenue and tax contributions from the state's sports betting industry did too. Adjusted gross revenue (AGR) for Virginia's best sports betting apps came in at $47.7 in March, thanks largely in part to a sportsbook-friendly 10.8% hold for the states' betting sites. It represents the highest hold rate for Virginia sportsbooks since November.

$47.7 million is also the highest profits reported for the Virginia legal sports betting sites since September and is nearly $8 million more than was reported in February. In March 2022, revenue for Virginia's legal sports betting sites came in $14 million less at $33.7 million.

Sportsbook revenues for the first three months of 2023 are a whopping 44.4% higher than was reported over the first three months of 2022. Betting sites in the state have been on a run of good luck as their win rate has eclipsed the 9% threshold in every month since June.

Thanks to the win rate and the increased profits for Virginia sportsbooks in March 2023, an impressive $7.4 million in taxes was paid to Virginia’s General Fund, with another $185,000 going to the state’s Problem Gambling Treatment and Support Fund. Virginia taxes sportsbook revenues at a state-friendly 15%.

Looking ahead

March’s legal sports betting numbers likely won’t be duplicated again for a few months. Baseball and reduced playoff schedules in both the NBA and NHL will lead to an inevitable sharp decline in betting activity in Virginia and across the U.S during the summer months.

The good news is that September and the start of the NFL season will be here before long. The difference in handle between August 2022 and September 2022 was about $125 million. Then the state reeled off four consecutive $500 million sports betting months. In April 2022, Virginia sportsbooks slipped below $400 million in wagering activity, and had to wait until September to climb over that mark again.