March was a good month for the US legal sports betting industry as states and providers were able to take advantage of March Madness after its COVID-19, 1-year hiatus. The latest state to report a handle boom is one of the true newcomers on the US legal sports betting scene, Virginia, whose online-only platform has been on the rise since launch on January 21.
The Virginia Lottery is reporting that its two-and-a-half-month-old legal sports betting industry is on good footing heading into the summer after a March spike elevated the Commonwealth to the top of the second tier of legal sports betting jurisdictions. While Virginia may never be on par with New Jersey, Nevada or Pennsylvania, March’s handle put them in sixth spot on the list of bet-friendly states with just Illinois still to report.
Surpassing $300 million
Virginia’s legal sports betting scene hit a bit of a milestone in March after just their second full month of operation. Sportsbooks took in over $300 million for the first time and landed at a $304.1 million handle. That number is 14.4% higher than the Commonwealth reported during its first full month in operation, February, when sportsbooks generated $265.8 million in bets. From launch date January 21 to the end of that month, Virginia books took in $58.9 million.
Revenues for March are also impressive. The Lottery is reporting $26.5 million in gross gaming revenue for the month with a higher than average 8.74%-win rate. $13.5 million in adjusted gross revenues were recorded after $10.34 million in promotions and bonuses and $2.4 million in other deductions.
Sportsbooks’ profits were reported in Virginia for the first time in March.
$1.18 million in tax revenue was generated for needy state and local coffers from the profits – a nice spike from the $300,594 the Commonwealth took in February.
Hoops
Not shockingly, it was basketball that was the main driver of Virginia’s March sports betting handle. March Madness was the biggest contributor to the overall handle with $83.6 million in bets, or 27.5% of the overall handle. This despite Tennessee bettors being forbidden to bet on any Virginia-based schools for which there were 4 in the NCAA Basketball Tournament.
Pro basketball was also a major contributor to March’s overall handle. With the playoffs approaching and NCAA action in the books for another year, it is likely that NBA hoops will remain the major driver of the Virginia scene until the NFL gets back on the field.
The Virginia Scene
Virginia launched its legal sports betting platform just over three months ago with just five providers – BetMGM, BetRivers, the two national DFS giants, and William Hill. The market has since expanded to seven with the addition of WynnBET March 12 and Unibet April 28 and has a chance to swell to up to 18 thanks to new legislation in the Virginia House and Senate.
Golden Nugget, Bally’s Corp. and Penn National Gaming’s Barstool Sportsbook are currently waiting in the wings to launch in Virginia, although firm dates have yet to be announced. The new laws governing the rapid expansion is expected to go into effect July 1, meaning that the saturation-point for the Virginia scene could be coming sooner than later.
Where March Puts Virginia and National Scene
Virginia’s sports betting providers helped the Commonwealth to the sixth-highest monthly handle in the US scene in February. $300+ million handles don’t exactly grow on trees so there is plenty for the providers in the jurisdiction to be proud of.
That said, there is nowhere to go but up for the Virginia market. As the legal sports betting platform matures, the market should steady, giving Virginia one of the more reliable betting scenes in the Nation.
Speaking of the Nation, with the emergence of Virginia and the maturation of a few other legal sports betting jurisdictions within the US, comes the realization that another National monthly handle record is within reach.
January’s $4.36 billion is definitely in danger of being eclipsed and in fact, the US is on track to hit the $4.6 billion mark, assuming Illinois can match at a minimum, their $510 February handle.
The total National handle since the 2018 Supreme Court decision to overturn its blanket ban on legal sports betting is also on pace to hit $52 billion. Amazing.
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