Virginia’s second year of legal sports betting began with an unprecedented monthly handle. The Virginia Lottery reported that there were more than $485.5 million in wagers placed in January.
This figure was 13.8% higher than the December total of $426.7 million and also beat October’s record of $427.3 million. This was Virginia’s fourth consecutive month exceeding the $400-million mark.
Virginia finds sports betting success
Since its launch in January 2021, the state has already generated more than $3.7 billion in handle. Virginia was close to becoming the eighth state to surpass $500 million in handle in January. It currently ranks eighth in all states that have achieved this feat.
The 11 Virginia mobile operators posted an average 8% hold, which translated into slightly more than $39 million in gross gaming revenue (GGR). This was a 23.9% increase over December’s performance, and was second behind November’s $48.3 million. It was also fueled by a 12% win rate by operators.
State adds revenue source
The state’s cut through taxes was $18.2 million in adjusted gross revenue (AGR) when included bonuses, free-play incentives and authorized deductions. Virginia taxes this revenue at 15%. This resulted in the state receiving $2.9 million in receipts. Virginia received more than $2 million in taxes from operators for the fourth consecutive month.
Nearly $17 million of revenue was generated by bonuses and free play, with just shy of $4 million from deductions. This was the seventh consecutive month in which bonuses and free play incentives exceeded $10 million. In all twelve months of wagering, deductions totaled at most $2 million.
Although the Virginia Lottery doesn’t disclose handle or revenue numbers for each operator, it did note that four operators had a net positive AGR, which allowed the state to collect taxes. Despite a reported total of almost $150 million, there has not been a month in which more than four operators had a net positive AGR.
College wagers still off the table
Virginia could have increased its sports betting revenue this year, but it now looks impossible. By a vote of 18-4, the House General Laws Committee pushed Senate Bill 576 aside a week ago. This bill, which would have authorized wagers on in-state college games, had already passed the state Senate earlier in this month, 23-17.
Montgomery Mason, a Democrat and the main sponsor of the bill, assured lawmakers that even if it isn’t passed this year, it would eventually be legalized. He spoke towards the end of a long hearing, as the committee tried closing legislation action before the session ended.
The legislator emphasized that he is not a gambler. He sponsored legislation to ensure that sports betting on athletic programs such as Virginia Tech or the University of Virginia is happening in legal sportsbooks and not conducted on the black marketplace.
Opponents of the bill claimed it was too early to change the rules as sports betting had only recently been legalized. Many committee members stated that they opposed it since state colleges and universities made it clear two years ago they didn’t want students betting against other students.
2021 was a good year for U.S. sports wagers
According to the American Gaming Association, 2021 broke a new record. The US commercial gaming industry saw $53 billion in revenue, making it the most lucrative year so far. This total surpasses the previous record of $43.65 billion by more than 21%.
This industry’s growth can be attributed to a number of factors. First, legalizing sports betting in the USA has had a significant impact. Another thing is that many people found online gambling for the first time during the pandemic.
Online gambling is still very popular even though people are returning to their offline activities. Brick-and-mortar businesses that made adaptations to the COVID-19 era were able to see new business in 2021.
2020 and 2021 are just a glimpse into the future. US sports bettors will have more options as more states relax their regulations on sports betting. The growth in gambling in America means more casinos and sportsbooks will be available to consumers. New doors will be opened, offering bettors in the US better products and services.
Story by Erik Gibbs
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AFP
