Virginia Sports Betting AGR Grows 53.4% to $40.5 Million in June 2024

Virginia’s sports betting scene experienced a remarkable surge, with adjusted gross revenue (AGR) soaring by 53.4% to $40.5 million. This surge was underpinned by a 27.6% rise in the total handle, demonstrating the growing enthusiasm for sports betting in the state. The figures released Virginia Lottery June 2024 Sports Betting Report by the Virginia Lottery paint a picture of a robust and expanding market, even as the summer months traditionally see a slowdown.

Online Wagering Dominates

The lion’s share of Virginia’s AGR came from online sports betting, contributing $40.2 million of the total revenue. Retail sports betting, which operates out of land-based casinos, contributed a mere $230,230. This stark contrast highlights the dominance of digital platforms in the state’s sports betting landscape. Bettors in Virginia placed a total of $415.4 million in wagers, reflecting a notable 27.6% increase compared to $325.5 million wagered in June of the previous year.

The predominance of online betting is further emphasized by the fact that 99.4% of the handle, equating to $413 million, was placed online. Only $2.4 million was bet through retail sportsbooks at casino locations. This strong preference for online platforms underscores a broader trend in the sports betting industry, where convenience and accessibility are driving bettor choices.

In of promotional deductions, Betr emerged as the only operator in Virginia eligible to claim such deductions. The company deducted $11,000 in promotions and bonuses from its AGR. While the Virginia Lottery’s report did not break down the data by operator or individual sport, it noted that 10 out of the 14 approved operators reported positive AGR for the month. This indicates a healthy level of competition and success across the state’s sports betting operators.

Among the key players in Virginia’s market are FanDuel, DraftKings, BetMGM, Rivers, Caesars, and Penn Interactive. These operators contribute significantly to the state’s sports betting ecosystem, each vying for a share of the growing market.

Virginia’s tax revenue from sports betting in June reached $6.2 million, marking a 59% increase from the previous year. The state imposes a 15% tax on AGR. Per state regulations, 97.5% of the collected taxes are allocated to the General Fund, totaling $6.1 million for June. The remaining 2.5% is designated for the Problem Gambling Treatment and Fund. This distribution reflects Virginia’s commitment to both its general budget and addressing gambling-related issues.

The Summer Slowdown

June’s betting totals of $415.36 million represented an 18% decrease from May’s $505.59 million. This decline, often referred to as the “summer slide,” is a common occurrence in sports betting markets during the off-season. Bettors typically reduce their activity during the summer months before the return of major sports events in the fall. Despite this drop, June’s figures were approximately $90 million higher than those from June 2023, underscoring the year-over-year growth in Virginia’s sports betting market.

Steve Bittenbender, an analyst from BetVirginia.com, attributed this seasonal dip to the natural cycles of the sports betting industry. He reassured that the decrease in handle is part of a healthy market pattern and does not signal any long-term issues for Virginia’s sports betting landscape.

As Virginia’s sports betting market continues to evolve, the impressive growth in AGR and handle from June reflects a thriving industry. While the summer slowdown is a familiar trend, the underlying growth and increasing tax revenues suggest a robust and resilient market. As the state gears up for the return of high-profile sports events, the sports betting sector is poised for renewed activity and sustained momentum in the months ahead.

Source:

”Virginia betting revenue up year-on-year to $40.5m in June”, igamingbusiness.com, August 02, 2024.