For those that follow the US legal sports betting industry, the month of May has been a bit of a mystery. There are states that followed the predicted trend of a summer wagering slowdown and others that have seen month-to-month increases in their betting handles.
The latest state to report their May sports betting figures is Virginia, one of the two mobile-only betting states in the US scene. The Virginia Lottery reported a slight drop in wagering activity from April to May, just like other competing jurisdictions Michigan, Pennsylvania, Rhode Island and New Hampshire. On the other side of that coin are states like of Nevada, Colorado, New Jersey, Indiana, Mississippi and Washington DC which all posted increased in their handle in May.
Through it all Virginia was able to hit a major milestone in May. They became the 11th state since the Supreme Court’s 2018 decision to overturn its blanket ban on sports betting to reach the $1 billion mark in sports betting handle. It took Virginia four months and 11 days, besting Tennessee that took 6 months to achieve the goal.
Handle up, Revenues Down
It has been an intriguing theme in the US legal sports betting industry that states with handle decreases post revenue increases and vice versa. Virginia is one of the jurisdictions that saw a betting activity dip and a revenue spike in May.
The Virginia Lottery is reporting a $226.9 million handle for May, which represents about a 4% drop, or $10 million from the $236.4 million that sportsbooks took in during April. While a drop in handle for the second month in a row is concerning, May’s slump is certainly an improvement over the 22% decline Virginia experienced from March to April.
As mentioned, revenues from the handle showed an impressive increase. Virginia sportsbooks made $15.67 million, an eye-opening 37.6% jump from the $11.38 million they made in April. It may be due to the high 10.21% hold that was reported in the state during May. Almost $2.4 million in taxes was collected from sportsbook revenues in Virginia in May, a healthy 44% jump from the $1.65 million reported in April.
Some Lifetime Figures
The Virginia sports betting scene is still in relative infancy but has already raised a few eyebrows. Virginia became the fastest to reach the $1 billion. Since launch January 21, the state’s sportsbooks have actually brough in $1.1 billion and have contributed $5.4 in taxes to Virginia’s needy state and local coffers.
In the words of Jessica Welman, analyst for the PlayUSA.com Network, which includes PlayVirginia: “The launch of sports betting in Virginia has gone about as smoothly as could have been expected. Launching just in time for the Super Bowl got the market off on the right foot. But the state’s sportsbooks still reached the $1 billion milestone mostly without the benefit of football and during two months when sports betting typically slows. That makes the record all the more impressive.”
Where Do They Do From Here?
Virginia’s record of being the fastest to $1 billion likely won’t last with other new Heavyweight states outpacing Virginia. But nobody can take away what Virginia has done with respect to their sports betting platform. Monthly handles will increase when the retail side of the Virginia scene is up and running sometime in 2022. The possibility of expanding the menu to include college sports betting will likely help the state’s bottom line as well.
“Virginia’s record-setting start has come in spite of its wagering ban on in-state college teams, which is essentially leaving money on the table. Hopefully, the ban will eventually be addressed, but even with it Virginia’s young industry remains in excellent overall health,” said Dann Stupp, analyst for PlayVirginia.com. It all adds up Virginia continuing to be one of the most reliable, and impressive markets in the country. Once the NFL season kicks off, so too will record handles for the state.
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