Analysis: Virginia sports betting volume jumps to $235M in June
Virginia sports betting volume grew for the first time in three months, while gross gaming revenue remained strong thanks in part to betting on sports such as golf and tennis.
The June jump helped push total gross gaming revenue past $100 million since the market launched, another impressive milestone for the Commonwealth, according to PlayVirginia, which tracks the state’s gaming market.
“Sportsbooks are capitalizing on individual sports like golf, which are predominantly futures bets with significantly lower odds for bettors than more conventional bets on sports like football,” said Jessica Welman, analyst for the PlayUSA.com Network, which includes PlayVirginia. “Those bets are particularly important during the summer when volume drops. And it puts sportsbooks in an excellent position as the football season nears.”
Virginia’s sportsbooks accepted $234.9 million in wagers in June, up 3.5% from $227.0 million in May, according to data released Friday by The Virginia Lottery. All told, 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. All told, sportsbooks have produced $49.3 million in adjusted gross revenue.
“The good news is that revenue is headed in the right direction, which ultimately benefits the state in the form of more tax revenue,” said Dann Stupp, analyst for PlayVirginia.com. “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.”
FanDuel Sportsbook, the nation’s largest operator, has so far dominated the Virginia sports betting market, according to an analysis by Legal Sports Report, PlayVirginia’s sister site. 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, by far the most of any operator.
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)
“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.”
For more information and analysis on regulated sports betting in Virginia, visit PlayVirginia.com/revenue.