The Virginia sports betting market had a strong July as the Virginia Lottery released its numbers. Through its 14 sportsbook operators, bettors across the Old Dominion registered a handle of $266 million.
The Month of July in Virginia Was Stronger Than Expected
Virginia’s sports betting market has steadily increased in the span of a year as there were only seven operators that were available to the public last year. As a majority of sports wagering is done online, 13 of the 14 options offer mobile sports betting.
The 13 sportsbook operators and the one retail location brought in $21.4 million in adjusted revenue. The gross revenue for July was slated at $26 million. Unlike some states across the industry, the results in the Old Dominion favored the house.
Bookmakers combined to post an average win rate of 9.8 percent. The industry’s average is set at around seven percent. The state’s budget also passed a legislative change that had an effect on the sportsbooks that conduct business in the state.
The amendment states, “From excluding bonuses or promotions used to encourage betting from their adjusted gross revenue 12 months after they begin sports betting activity in Virginia.” Ultimately, this led to a significant decline in promotional credits and free bets as the operators were unable to write off such deductions.
The number of promotional credits totaled $400,000. In July 2021, the previous low was just shy of $4.4 million, but $4.2 million of the deductions this month came from adjustments.
Virginia Year-Over-Year Numbers Continue to Look Better
Despite the summer slowdown taking its toll on the sports betting industry, Virginia’s market has remained relatively strong. Out of all the states that reported their monthly handles, Virginia currently ranks fifth trailing New York, Nevada, New Jersey, and Pennsylvania.
Although the sports betting handle has decreased by 9.9 from June, the year-over-year numbers are up by 64.3 percent. With nearly 45 percent of the total revenue from sports wagering coming from the first seven months of 2022, Virginia became the eighth state in the post-PASPA era to surpass $500 million.
In each of the last four months, the win rate based on gross revenue has hit the 8.7 percent mark. Virginia’s market has been in operation for 19 months, and July’s hold percentage was the seventh highest win rate in its history. The Virginia Lottery doesn’t break down its monthly handles by operator market share and sports categories.
Virginia is Looking Forward to the Last Quarter of the Year
Virginia’s sports betting market is certainly ahead of neighboring state Maryland. Maryland is in the process of pushing for mobile sports betting, but the major delay will most likely cause the Old Line
State to lose millions in the last quarter of the year.
Virginia’s sports betting numbers will certainly skyrocket as the NFL season will bring in a lot of wagers. In Virginia, January 2022 holds the record for sports betting, generating $485.5 million in one month. It is highly likely that this record will be surpassed in the near future.
