Despite a dip in May, Virginia’s gross sports wagering revenue continues to climb significantly.
The Virginia Lottery reported that sportsbooks made $48.1 million in gross revenue for May, pushing Virginia’s sports betting industry to become the seventh to exceed $1 billion in gross sports wagering operator revenue since PASPA was repealed.
It took Virginia 29 months to reach this milestone after launching in January 2021. The other states in the billion-dollar club include:
- New Jersey
- New York
- Nevada
- Illinois
- Pennsylvania
- Indiana
Indiana just hit the $1 billion mark in April.
Virginia Hits $1Billion Despite Dip in May
The Old Dominion reached the $1 billion threshold, despite a lower handle in May. According to the most recent Virginia Lottery data, between May 1 and May 31, 2023, Virginians wagered $403.7 million, which was down a little over 5% month-over-month. April’s handle topped out at $426 million in April.
But on the flip side, this is the ninth consecutive month that Virginians have wagered more than $400 million in gambling. In comparison to May 2022, the handle increased by about 15% statewide, while gross revenue increased by 13.2%.
The revenue for May (2023) reflects a nationwide trend of sportsbooks achieving significant earnings. Virginia’s hold for May was 11.9%, marking the third consecutive month of double-digit holds. This achievement positions Virginia in 12th place among the 25 states that have reported their figures.
Virginia Sports Betting Tax Paying Dividends
During the first 11 months of FY 2023, Virginia has collected more than $67 million in sports wagering taxes. The state has surpassed the previous year’s amount by $17.2 million, reaching a total of $30.5 million in tax collections for the first five months of 2023.
This is due, in large part, to last year’s budget amendment that limited promotional credit deductions for operators. It has significantly increased tax receipts for the fiscal year 2023 and the first five months of this calendar year.
The state collected approximately $6.3 million in tax revenue from the adjusted gross revenue of $42.5 million, thanks to its 15% tax rate. This achievement places Virginia in the ninth position nationwide. Before the budget amendment took effect last July, Virginia had collected $35.5 million in tax receipts within the initial 18 months of legal wagering. So, the pace has accelerated significantly.
May’s payout distribution follows Virginia’s sports betting regulations, with 97.5% of the revenue going to the state’s General Fund and 2.5% going to the Problem Gambling Treatment and Support Fund. The payout distribution for May is as follows:
- General Fund: $6.1 million
- Problem Gambling: $157,132
Lawmakers hope to build on those numbers with football season just around the corner.
Virginia Brick and Mortar Sportsbooks Also Have Good Month
The handle at physical sportsbooks also looks good month over month. It increased from $3.5 million in April to $3.7 million in May, while retail sportsbooks reported that their adjusted gross income for the month was close to $700,000.
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