The Virginia Lottery’s monthly wagering data for March reveals a substantial upturn in betting activity across the state, marking a significant increase in both mobile and retail gambling revenue. The comprehensive report covers gross sports betting revenue and other key financial figures from various licensed entities within Virginia, painting an encouraging picture of the state’s wagering landscape.
Delving into the world of mobile betting, a striking growth of 24.2% was observed in March 2024’s gross sports betting revenue, which reached $629.7 million, up from the same month the previous year. Players saw gross winnings of $582.5 million – a notable uptick of 28.7%. This brisk escalation in betting activity is indicative of the burgeoning interest and the thriving market for sports wagering among Virginians.
March also witnessed a sharp downturn in the distribution of bonuses and promotional offerings by mobile operators. A mere $12,973 was recorded in allowable promotions and bonuses, a dramatic fall from the $3.8 million documented in March of the prior year. Mobile operators in Virginia are subject to a limitation that permits them to deduct promotional play costs only within the first 12 months of operation. Consequently, as each platform hits that 12-month threshold, the amount they can deduct decreases, hence influencing the considerable decline.
Subtracting other deductions totaling $5.1 million, the mobile operators’ adjusted gross revenue (AGR) for the month amounted to $41.9 million. AGR, as defined by Virginia state law, is calculated by deducting total winnings and permitted expenses from the sum of all wagers placed. State law prescribes a 15% tax on sports betting based on this AGR for each license holder.
Turning the focus to Virginia’s retail sportsbooks, there’s also plenty to cheer about. Retail sports gaming revenue grew by 29.2% year-over-year to $5.9 million. Concurrently, gross winnings for these venues increased to $5.3 million, marking a 34.7% ascent from the previous year. Notably, retail sportsbooks accounted for $0 in promotions and bonuses for the said period.
After accounting for additional deductions of $63,163, up 40.2%, the AGR for retail venues was reported at $479,376. Despite this being the only decrease on a year-over-year basis – a 12% dip – the overall picture remains positive.
March’s cumulative gross winnings across the state totaled $587.8 million, showcasing a robust 28.8% growth compared to March of the previous year. Other deductions for the month reached $5.2 million, bringing the total AGR to $42.4 million, albeit a decrease of 10.9% on a year-to-year basis.
With 15 authorized operators and 22 suppliers, Virginia’s sports betting industry demonstrates a healthy competitive environment. Thirteen of these operators reported net positive AGR in March, culminating in tax contributions to the state treasury amounting to $6.2 million.
Moreover, according to state law, a significant portion of this tax revenue – 97.5% – is funneled into Virginia’s General Fund, essential in supporting various public services and initiatives. The remaining 2.5%, amounting to $156,227 for March, aids the Problem Gambling Treatment and Support Fund, assisting those impacted adversely by gambling.
In comparison to the $545.1 million sports betting handle in February, which was about $90 million less than March but still representing a 25.6% year-over-year increase, the latest figures speak volumes about Virginia’s expanding betting industry. The majority of February’s bets derived from mobile platforms ($540 million), with retail locations contributing the rest ($4.9 million).
In conclusion, these statistics signify not only a growing acceptance and participation in sports wagering among Virginians but also highlight the evolving landscape of the state’s gaming industry. The report underscores the potential revenue benefits to the state’s coffers while also drawing attention to continued responsible gaming efforts.
