Virginia Sports Betting Grows 69% YOY in April
Despite losing a six-month streak of clearing $400 million each month, Virginia sports betting grew 69% year-over-year in April.
According to the figures released Wednesday by the Virginia Lottery, the state’s sports betting handle fell nearly $500,000 short of $400 million in April. The latest number of $399.5 million represented a 14.9% decrease from March’s $470 million – the second-highest total of the Old Dominion’s sports betting industry since launch.
April’s handle was also the lowest since the Virginia sportsbooks drew $293.9 million in September 2021.
Virginia online sports betting that went live in January 2021 had a record month this January when the state’s sportsbooks combined for $485.5 million in total handle.
Virginia Sports Betting Grows 69% YOY
However, the downslide in April hardly reflects a real market situation in Virginia, which has actually grown significantly both by hand and revenue over the last year.
Despite reporting a 14.9% decline in the handle, VA sports betting grew 69% year-over-year. In April, 12 operators amassed $399.5 million in total handle, representing a 69% increase from $236.4 million reported by the seven operators in April 2021.
FanDuel kicked off Virginia online sports betting industry on Jan. 21, 2021, followed by DraftKings and BetMGM a few days later. The market, which initially capped up to 12 licenses, continued to swell with more operators in the coming months.
Revenue Actually Grew from March
On the other hand, gross gaming revenue increased by 9% to nearly $36.3 million, thanks to the 9.1% hold that was almost two full percentage points higher than March’s 7.2% win rate.
VA operator’s revenue in April was also an incredible increase of 86% from $19.4 million in the same period last year.
After deducting $11.3 million in promotional spending and $4.3 million in carryover deductions, VA operators produced nearly $20.8 million in adjusted revenue. In addition, the state generated around $3 million in taxes from the industry – the second-highest after the $4.2 million generated in November.
Five of the twelve operators in April finished with positive adjusted revenue eligible for taxation.
The Virginia Lottery does not reveal handle and revenue figures by either individual operator or sport.
Virginia Sports Betting to Clear $5 billion Handle in May
With April’s handle, Virginia is just $22 million short of becoming the ninth state to top $5 billion in sports betting handle in the post-PASPA era.
Virginia’s April handle makes it the fifth-largest national, with Illinois and Arizona yet to release numbers. However, the ranking may change once the remaining two markets report their April handles.
Still, the relatively new market of Virginia represents a perfect example of a growing market ever since it went live 16 months ago. Without football or a huge wagering event like the opening weekend of the NCAA, the national sportsbooks lose steam heading into the summer, said Eric Ramsey, an industry analyst. However, the YOY increase remains consistently strong, reflecting that VA sports betting has so far shrugged off the economic restraints visible in the greater economy.
However, as the NBA Playoffs, the Final Four, and the opening month of baseball defined the US sports betting in April, the absence of those attractions will reflect the industry in the coming months until football season kicks off in September.