Sports betting in Virginia crosses the billion-dollar mark

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The Virginia Lottery today released its report on sports wagering activity submitted by licensed operators for the month of May, the fourth full month of reporting since legal sports betting launched in Virginia on Jan. 21.

Between May 1 and May 31, Virginians wagered $226,963,573 (“handle”) and won $203,790,024, for a combined 10.21% operators win percentage (“hold”). Virginia’s sports betting catalog of approved leagues and events continues to expand, and through the end of May, bettors have wagered a combined total of more than $1 billion on everything from golf, football and motor sports to soccer and basketball.

The seven licensed operators included in May’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 (William Hill), WSI US, LLC (Wynn), and Unibet Interactive, Inc. A complete list of all approved operators can be found here, under the “approvals” tab.

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.

Virginia’s statute allows operators to deduct certain customer acquisition costs from AGR, and operators reported more than $5.1 million in bonuses and free-play incentives in May.

Gross sports gaming revenues

  • May 2021: $226,963,573
  • Inception to Date: $1,092,137,212

Gross winnings

  • May 2021: ($203,790,024)
  • Inception to Date: ($1,007,122,612)

Bonuses and Promotions

  • May 2021: ($5,168,732)
  • Inception to Date: ($40,569,196)

Other deductions

  • May 2021: ($2,341,616)
  • Inception to Date: ($10,024,418)<

Adjusted gross revenue

  • May 2021: $15,663,201
  • Inception to Date: $34,420,986

Four operators reported net positive AGR for May, and the associated tax collections are as follows:

Total tax

  • Monthly Taxes: $2,381,115.69
  • Inception to Date: $5,557,054.31

General fund allocation

  • Monthly Taxes: $2,321,587.80
  • Inception to Date: $5,418,127.95

Problem Gambling Treatment and Support Fund Allocation

  • Monthly Taxes: $59,527.89
  • Inception to Date: $138,926.36

Of the state tax on sports betting AGR, the statute specifies 97.5 percent is to be deposited in the state’s General Fund and 2.5 percent is to be deposited into the Problem Gambling Treatment and Support Fund administered by the Virginia Department of Behavioral Health.

Augusta Health Augusta Free Press Kris McMackin CPA
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Augusta Free Press