Virginia’s June Sports Betting Revenues See Slight Dip

Virginia's June Sports Betting Revenues See Slight Dip

Virginia’s sports betting scene experienced a slight decline in June 2023, with the handle dropping below $400 million for the first time in nine months.

Despite this, the state’s sportsbooks still managed to post a 10% hold for the fourth consecutive month, with nearly $26.7 million in gross revenue, according to the latest figures from its regulator, The Virginia Lottery Board.

It reported that players wagered a total handle of $325.46 million in June, a 10.2% increase from the same period last year. However that’s a 19.4% decrease from May 2023’s $403.7 million.

June was a tough month for U.S sportsbooks, with upset championship-winning runs by the NBA’s Denver Nuggets and the NHL’s Las Vegas Golden Nights forcing bookmakers to hand out millions on big winning bets. In both teams’ home states, operators suffered big losses for the month.

Hower, Virginia’s sportsbooks bucked that national trend. June marked the 16th consecutive month operators held on to higher than the 7% national average of their total handle.

This month also puts Virginia into the top 10 all-time state sports betting handles for June, at 7th place. The nation’s biggest sports betting market, New York, sits comfortably at the top, where bettors consistently total billion dollar handles each month.

Taxes and Credits

Back in Virginia, revenues in June were up 25.8% at the state’s books. Adjusted revenues of more than $26.4 million, after accounting for promotional credits and permissible deductions, were double the $13 million for June 2022.

This resulted in an inflow of $3.9 million into Virginia’s tax coffers, lifting the total for the calendar year to $34.5 million.

Operators that were eligible to deduct promotional credits against gross revenue reported slightly more than $1.3 million in such credits for June. This was an 83.2% drop compared to last June, which was the last month operators who had conducted wagering for more than 12 months were eligible to deduct those promotions.

The Bigger Picture

Despite the slight dip in June, the overall picture for Virginia’s sports betting scene remains strong. In the first half of 2023, Virginians have wagered over $2.6 billion on sports.

Virginia does not reveal monthly figures by operator. However, a recent information request to the Virginia Lottery Board showed that operator FanDuel had more than 41% of the sports gaming market in Virginia during the period from January through May.

Draft Kings represented 26.4% of sports wagers, followed by Bet MGM at 12.4%.

As is reflected nationally, Virginia mobile betting dominated in June, with 99% of the market share. However, retail books never really stood a chance, as there is currently only one in the state, at Hard Rock Bristol Casino.

While June’s figures represent a slight dip, the overall trend for Virginia’s sports betting scene remains positive.

The state’s sportsbooks have consistently posted a 10% hold for several months, and gross revenue figures are still up year-on-year.

June was tough for U.S books, with most major sports leagues in the off-season and the upset wins in the NHL and NBA finals – but Virginia’s sports betting operators have weathered the storm better than most.

As the sports calendar picks up in the latter half of the year, it’s likely that Virginia’s sports betting scene will continue to post good results.

Author: Paul Campbell