Virginia sports betting market grows 15% YoY in May as revenue tops $42m

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Virginia’s sports betting market has topped $400m in handle for the ninth consecutive month in May, with the industry showing strong double-digit growth on an annual basis.

Data published by the Virginia Lottery revealed that bettors wagered $403.7m during May, up 14.9% year-over-year, though this did mean a slight decrease from April’s tally. 

Q2 does represent a fall in sporting action, therefore a drop in sports betting activity is usually anticipated, but 15% annual growth indicates that Virginia’s sports betting market is going from strength to strength. 

Meanwhile, Virginia’s operators recorded a strong hold rate of 11.9% as sporting results turned favorable for the sportsbooks. 

This helped revenue remain at a strong level, with the operators taking in $42.5m during May. Operators were allowed to deduct $1.8m in promotional credits and bonuses, with $3.8m in other authorized deductions also allowed.

With a 15% tax rate implemented on sports betting revenue, operators paid out $6.3m to the Virginia state during May. Of this total, $6.1m will head to the General Fund Allocations, while $157k will go towards the Virginia Problem Gambling Treatment and Support Fund Allocation. 

Meanwhile, work will begin on establishing the Problem Gambling Treatment and Support Advisory Committee in Virginia after a bill mandated its creation. 

The bill was put forth by Sen. Bryce Reeves and Del. Paul Krizek and gained the support of the legislature. Reporting to the Department of Behavioral Health and Developmental Services, the committee will seek collaboration between experts in the field of problem gambling to reduce the impact of problem gambling as expansion continues in the state. 

There are nine members of the committee, comprising Chairperson Anne Rogers from the Department of Behavioral Health, Kelly Gee – the ED of the Lottery – as well as representatives from casino and sports betting operators, the Virginia Racing Commission, the Department of Agriculture and Consumer Services, Community Service Board and the HHR industry.

The committee will next meet on July 18.