June was considered a good month nationally for the sportsbooks, and Virginia was no exception to that rule, as the Virginia Lottery reported increased year-over-year handle and revenues in Old Dominion.
Virginia Sportsbooks Rule in June
Virginia’s Office of Tourism launched a successful campaign years ago whose tagline was “Virginia is for Lovers.” However, June’s financial reports indicate Virginia is now a fertile breeding ground for sportsbooks.
The handle was up 15% from last June, generating $478 million in wagers, while revenue also increased, and gross revenue soared over 33% to $61 million over the same time period. A lofty hold, or win rate, was responsible for the impressive revenues, as it was reported that sportsbooks averaged 12.7%, the highest hold in three years.
Over the first six months, Virginia bettors have increased their activity 11% from last year, and the NBA Finals and MLB betting contributed to the boost in June. The state’s 15% tax produced $8.4 million after deductions in June, totaling $57.1 million for the state’s tax coffers so far this year, with more than $216,000 earmarked for the Problem Gambling Treatment and Support Fund.
As usual, mobile sports betting’s numbers dwarfed those of retail shops, with the digital wagers amounting to $472.7 million versus just over $5 million for the brick-and-mortar locations. Likewise, mobile sports betting revenues were also booming to $57.43 million versus a loss of over $327,000 at the land-based sportsbooks.
Casinos’ Revenues Lag Behind May
Virginia’s three land-based casinos reported a loss of over $327,000, but their bread and butter, table games and slots, registered $78.5 million in adjusted gross revenue, which was responsible for $14.1 million in taxes to the commonwealth.
However, June’s casino report was down 8% compared to last month, with Caesars Virginia revealing adjusted profits of $30.56 million, followed by Rivers Casino Portsmouth’s $26.5 million and Hard Rock Bristol’s $21.4 million.
It should be noted that Caesars Virginia opened its doors to its permanent facility in Danville only six months ago, yet it generated the most activity in June. It has gone from a temporary facility to a casino resort destination, and customers are taking notice.
Caesars Virginia Leads the Pack
Caesars Virginia General Manager Chris Albrecht said the landscape from a temporary facility to a permanent destination has had its challenges and rewards.
“It’s a much larger operation,” Albrecht said. “[The temporary facility] was a very focused gaming experience. Now you’re dealing with the complexity of hotel guests, higher-end restaurants, and concerts.”
Since the permanent casino opened, traffic has nearly doubled to where the resort is welcoming 175,000 patrons per month, as it is now equipped with 320 hotel rooms, a spa, restaurants, and a much larger gaming floor.
City Manager Ken Larking said the city had forecast $25 million in FY 2024-2025, which encompassed six months of the temporary facility and six months of the permanent location.
“It’s looking like it’ll be closer to $30 million or $31 million,” he said. “Council is considering adopting a budget amendment to appropriate additional funds.” This includes a local supplement of $5 million that Caesars has agreed to pay the city of Danville each year.
