Virginia Sportsbooks Record 25% YoY Handle Boost in February

The Virginia Lottery, which regulates sports wagering in the Commonwealth of Virginia, has released the February 2024 report on sports wagering activity submitted by licensed operators in the state. 

According to official data, between February 1 and February 29, sports fans in Virginia wagered $545,068,429, with $540,138,289 in gross sports gaming revenue from mobile operators and $4,930,140 from casino retail activity

The total amount marked a 25.6% increase compared to the handle recorded in February 2023.  

Virginians Won Over $495M in February

Bettors won $495,027,632 in total, with $490,422,566 from mobile operators and $4,605,066 from casino retail activity. Together, operators reached a combined 9.18% win percentage.

Virginia’s law slaps sports betting activity with a 15% tax based on permit holders’ adjusted gross revenue (AGR).

The AGR consists of the total wagers minus total winnings as well as any additional authorized deductions. 

In February, Virginia operators recorded a total AGR of $44,454,518. Out of the amount, $44,164,970 came from mobile operators.

Of the state tax on sports betting AGR, the statute mentions 97.5% should be deposited in the state’s General Fund

The remainder of 2.5% should reach the Problem Gambling Treatment and Support Fund which is managed by the Virginia Department of Behavioral Health and Developmental Services

A total of 11 state operators reported net positive AGR in February 2024, which triggered $6,342,927.34 million in taxes for the same month.

Promotional Deductions, at an All-Time Low

Promotions and deductions kept going down in February. After a senator’s proposal to limit operators’ write-off deductions in 2023, state governor Glenn Youngkin took things further and included a 12-month sunset on promotional deductions.

A total of four new operators went live last year in Virginia, with Bet365 debuting on January 31, 2023, Betfred on February 1, 2023, Betr on September 6, 2023, and SuperBook on October 19, 2023.

Bet365 and Betfred have already gone over the end of their timeline for deducting promotions. This means that only Betr and SuperBook can keep deducting their promotions.

In case there is no other operator ready to launch in Virginia in 2024, no operators will be allowed to deduct promotional play.

Since ESPN BET and Fanatics Sportsbook reskinned their existing platforms last year, they are no longer allowed to deduct their promotions.