Virginia sports bettors had a busy start to the new year. They wagered a record-breaking amount of money on various sporting events in January 2024.
Let’s examine the most recent figures and analyze their insights into the online sportsbooks industry in the Old Dominion State.
Virginia’s Winning Streak
According to the latest report from the Virginia Lottery, the state’s sports betting operators collected nearly $653 million in bets, which was a more than 27% increase from January 2023.
The report also revealed that bettors won over $578 million, resulting in a combined 11% win percentage for the operators. This means that the operators earned a little more than $74 million in adjusted gross revenue, which is the amount of money left after paying out winnings and other expenses. That’s an all-time high.
Virginia Collects Millions on Sports Betting Taxes in January
Sports betting operators are required to pay a 15% tax on their adjusted gross revenue.
This generated nearly $10 million in tax payments for the state in January 2024, of which $248,000 was allocated to the Problem Gambling Treatment and Support Fund. The fund is used to provide resources and assistance for people who struggle with gambling addiction.
Football and Basketball Popular Bets in Virginia
The Virginia Lottery’s report also showed that the most popular sports to bet on in January 2024 were football, basketball and hockey, which accounted for 85% of the total handle. The report also noted that online sports betting was the dominant mode of wagering, as 98% of the bets were placed through mobile devices or computers.
More than $646 million in bets were placed online, which allowed mobile operators to retain over $73 million in gross revenue, representing a hold that topped 11%.
Virginians Not Allowed to Bet on Their College Teams
What’s significant is that The Old Dominion is doing this without the ability to bet on their own college sports teams.
Some lawmakers are trying to amend the existing law that allows sports betting in Virginia but prohibits betting on Virginia college sports. A bill that was recently introduced would remove this restriction and allow licensed operators to offer bets on college games involving Virginia teams.
The bill has been carried to the next legislation, which means it won’t be considered until 2025.
Sports Betting Growth Continues in Virginia
The impressive performance of Virginia’s sports betting market last month reflects the growing popularity and demand for legal and regulated sports wagering in the state.
Virginia launched its sports betting industry in January 2021, and since then, it has seen steady growth in both handle and revenue. The record adjusted gross revenue for January pushed Virginia’s all-time total above $1 billion. It’s now the 11th state to reach that threshold of taxable operator winnings. The Old Dominion surpassed $1 billion in gross revenue last May.
The state currently has 12 licensed sports betting operators, including FanDuel, DraftKings, BetMGM and Caesars. However, more options are on the way.
The state is expected to launch more retail sportsbooks at casinos in Bristol, Danville and Norfolk. Temporary casinos are already operating, but permanent casinos are expected to open later this year or in early 2025.
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