V
irginia’s sports betting volume has grown for the first time in three months. As the sports betting catalogue of approved leagues and events continues to expand in Virginia, bettors have wagered a combined total of more than $1.3 billion. Gross gaming revenue remained strong thanks to betting on sports such as golf, tennis, football, motor sports, soccer and basketball.
June numbers helped push total gross gaming revenue past $100 million since the market launched, according to PlayVirginia, which tracks the state’s gaming market.
Between June 1 and June 30, Virginia’s sportsbooks accepted $234.9 million in wagers, up 3.5% from $227.0 million in May, according to data released Friday by The Virginia Lottery. They won $212.9 million for a combined 9.37% operators win percentage.
Sportsbooks took in $7.8 million in wagers per day over the 30 days of June, up from $7.3 million per day in May.
June’s wagers produced $22.0 million in gross gaming revenue, down 5% from $23.2 million in May, but still the third-most since the market launched in January. Adjusted gross revenue hit $14.9 million, falling short of the $15.7 million highwater mark reached in May. June’s results yielded $2.3 million in state taxes, including $56,850 for problem gambling support.
Virginia’s sportsbooks have now produced $107.0 million in gross revenue since launch. But promotional credits have sapped the majority of the win, even as adjusted gross revenue has risen significantly over the last two months. Sportsbooks have produced $49.3 million in adjusted gross revenue.
The seven licensed operators included in June’s reporting were Betfair Interactive US LLC (FanDuel) in partnership with the Washington Football Team, Crown Virginia Gaming LLC (Draft Kings), BetMGM LLC, Rivers Portsmouth Gaming LLC (Rivers Casino Portsmouth), Caesars Virginia LLC, WSI US, LLC (Wynn), and Unibet Interactive, Inc.
FanDuel generated $656.9 million in wagering from the market’s launch on Jan. 21 through June, according LSR’s estimates. That is 49.5% of the $1.3 billion in wagers made in Virginia over that time. FanDuel’s promotional spending was estimated at $19.6 million over that time.
Rival DraftKings was second with $337.1 million in wagers, or $25.4% of the state’s total handle. But DraftKings’ promotional spending was $10.0 million over that time, nearly half of FanDuel’s.
The leaders have been followed by:
- BetMGM ($217.6 million handle; $6.4 million promotional spend)
- William Hill ($94.2 million; $7.3 million promotional spend)
- BetRivers ($14.6 million; $1.4 million promotional spend)
- Unibet ($4.0 million; $455,526 promotional spend)
- WynnBET ($4.0 million; $455,526 promotional spend)
State law places a 15 percent tax on sports betting activity based on each permit holder’s adjusted gross revenue (AGR), which is defined as total wagers minus total winnings and other authorized deductions.
According to an official press release, Jessica Welman, analyst for the PlayUSA.com Network, which includes PlayVirginia, spoke about the state’s numbers.
“Sportsbooks are capitalizing on individual sports like golf, which are predominant features bets with significantly lower odds from bettors than more conventional bets on sports like football. Those bets are particularly important during the summer when volume drops. And it puts sportsbooks in an excellent position as the football season nears”.
Another analyst for PlayVirginia.com, Dann Stupp, also commented on these results.
“The good news is that revenue is headed in the right direction, which ultimately benefits the state in the form of more tax revenue. An increase in promotional spending should be expected during football season, though. That could blunt the effects of the rising volume that will come this fall”.
“A market share of nearly half is an incredibly strong position to be in for FanDuel,” Stupp said. “Amazingly, FanDuel’s overall market share has slipped a bit since March. The question is whether rival operators can continue to erode FanDuel’s position, even if the gap is far too large for any operator to overcome.”
