High win rates are producing big gains for legal sports betting operators in Virginia.
With an 11.9% hold for May reported this week by the Virginia Lottery, the Old Dominion has seen its win rate — which jumped 1.3% from April — climb every month in 2023. A May handle of $403.7 million was down 5.2% month-over-month but up 14.9% year-over-year.
Retail and online betting sites paid out nearly $355.6 million in winnings to sports bettors, leaving the operators with $48.1 million in gross revenue. After deductions, bonuses, and promotions, Virginia sportsbooks still claimed $42.5 million in taxable revenue, the second highest this year.
Virginia's operators surpassed $1 billion in gross revenue since sports betting became legal in Jan. 2021, joining New York, New Jersey, Nevada, Illinois, Indiana, and Pennsylvania for the billion-dollar milestone.
Based on a 15% tax rate, the Old Dominion received $6.4 million from 11 profitable operators in taxes, putting the state’s cut at over $30 million for 2023.
Online revenue rises
Online betting sites saw the bulk of the action once again in Virginia, as mobile operators took in $399.96 million in wagers for May, down 5.3% from April. However, revenue was up nearly $3 million.
Mobile sports betting in Virginia also handed out nearly $200,000 less in bonuses and promotions and saw about $300,000 less in deductions compared to April.
Brick-and-mortar sportsbooks saw their handle rise from $3.5 million in April to $3.7 million in May and made nearly $700,000 more in revenue.
