State of Virginia Reports Over $1b Sports Betting Revenue in Just 4 Months

The state of Virginia becomes part of an elite company, making over $1b from sports betting revenue in just 4 months.

3 years ago 0

Last updated on October 30th, 2022

Virginia is yet another of the select US states that are reporting over $1b from sports betting revenue. More specifically, the Virginia Lottery reports an exact number of $1.092b from wagering alone. Moreover, these huge revenue numbers are a product of operating under the new sports betting regulations. The new gambling legislation came to force on the 21st of January 2021, and in just 4 short months already is leaving its mark.

The Virginia Lottery report states that there is a gradual decline in the income numbers, month by month. For that matter, the state of Virginia made $227m in total wagers for May 2021, prior to the $236.4 in April of the same year. Consequently, there is a 4% drop between April and May.

Furthermore, Gambling providers conducted pay-outs in the amount of $203.8m. In particular, this amounts to a 10.21% operator margin, and will eventually produce something more than $23m.

Additionally, since the inception of the new sports betting market, there is an addition of several new sports in the betting sector. Those sports are football, soccer, basketball and golf. Moreover, there is a total of seven betting providers which contributed to the total revenue in the Virginia Lottery’s report. Those are Crown Virginia Gaming (LLC), BetMGM LLC, Betfair Interactive US LLC (FanDuel), River Portsmouth Gaming LLC (Rivers Casino), Caesars Virginia LLC (William Hill), LLC (Wynn), Unibet Interactive.Inc and WSI US.

Taxation also plays a crucial part in the $1b sports betting revenue that Virginia Lottery reported. Consequently, there are $2.38m in state taxes, gathered from sports betting. Out of this amount, $2.32m, or 97.5%, will go toward the state’s General Fund. The rest of the tax money, or $60.000, will go into the Problem Gambling Treatment and Support Fund. More specifically, this organization is under the jurisdiction of the Virginia Department of Behavioral Health.

It is good to mention that the state of Virginia imposes a 15% gaming tax, on any adjusted gross revenue. And for that matter, only 4 out of the 7 betting providers reported positive revenue numbers.