Virginia Sees Slight Rise in Sports Betting Handle and a Slight Dip in Revenues

There has been a common theme this summer within the broad US legal sports betting industry. State handles seem to be declining while at the same time, revenues seem to be experiencing spikes. The state of Virginia came out with their June legal sports betting report on Friday and their figures are opposite to the trends that have dominated the headlines during this time if traditional seasonal sports betting slowdowns.

The Virginia legal sports betting scene is still in relative infancy. June represented just the fifth full month of legal sports wagering operation in the state. Since its mid-January launch, the Virginia scene has been healthy, despite missing out on the bulk of the bread-and-butter NFL scene. With June's totals, the Virginial Lottery is reporting that the state's sportsbooks have already taken in more that $1.3 billion in bets.

Taking a Look at June

Virginia sportsbook reportedly accepted $234.9 million in sports bets during the month of June which is a 3.5% month-to-month increase from the $226.9 million in wagering activity reported in May. This despite a shortened betting menu for the state and the absence of any marquee sporting event.

Unfortunately for the state's operators, revenues from the legal sports betting platform didn't follow suit. In fact, revenues fell 4.9%, from $15.7 million in May to $14.9 million in June. Those numbers buck a nationwide trend in which sportsbook revenues during the summer months have seen an almost-across-the-board increase, some in the double-digit range.

Unfortunately for state and local tax programs that rely on the legal sports betting industry for funding, sportsbook tax contributions also showed a month-to-month decline. $2.27 million was paid out by Virginia sportsbooks in June, down 4.5% from the $2.4 million in May.

The hold rate was pegged at 9.37% for June.

Some Lifetime Numbers

With the release of June's legal sports betting numbers in Virginia, it gives us a chance to take a peek at how the platform has fared in their 5+ months of operation. Keep in mind that while Virginia was live for the Super Bowl, the state's industry has yet to experience a full NFL season.

Over the lifetime of the Virginia legal sports betting scene, the platform has taken in $1,327,080,647. Gross winnings after a slew of promotions and other expenses since January 21 came in at $1,220,059,751.

Total revenues from the platform as of the end of June are $49,317,884 and thanks to Virginia's 15% tax rate on legal sports betting, the state has benefitted to the tune of about $7.8 million in tax contributions.

All of the Big Names

So far, the Virginia legal sports betting platform has consisted of just mobile - retail is coming but it will take a while before the state's first licensed casinos are built. Until that time, the Virginia scene has been home to the biggest operator names in the industry.

Among the seven top tier operators there are one of the two DFS giants in the US scene in partnership with the Washington Football Team, the other DFS provider-turned sports betting provider behemoth, BetMGM, BetRivers, William Hill/Caesars, Wynn and Unibet, all of which have done an admirable job making Virginia the competitive market it is.

Heading Into the Fall

The first six months of sports betting operation may just be the tip of the iceberg for the Virginia scene. The real action begins in September, when the NFL season kicks off and the Washington Football Team that calls Virginia home get their season underway.

Three more operators are on the way to provide a spark in the Virginia industry including Golden Nugget, Barstool Sportsbook and Bally's – all should provide an extra boost for the overall industry. It all adds up to an enormous fall betting bonanza spike for Virginia, not just a small incremental increase as seen in June.