Virginia sports betting handle jumps 55% in May

Virginian sports betting handle rose by 55% year on year in May to $351.4m, according to latest statistics released by the Virginia State Lottery.

A principal factor in this rise is the doubling of the number of operators in the Old Dominion state sportsbook market to 14, a contrast to May 2021 when there were just seven operators active in the market.

Bettors in the state won a total of $308.9m during May, equating to a combined operator hold percentage of 12.10%. In total, Virginia bettors wagered a combined $5.3bn on approved sporting events taking place in the month.

Operator adjusted gross revenue (AGR), which is defined as total wagers minus total winnings and other authorized deductions, amounted to $27.5m in May.

Virginia’s statute allows operators to deduct certain customer acquisition costs from their AGR, with operators reporting nearly $10m in bonuses and free-play incentives in May as well as making other deductions of $5m during the month.

Virginia taxes sports betting operator AGR at 15%, with the state collecting $3.8m in taxes from the 14 licensed operators in May.

Funds received as part of the tax are distributed in the state, with 2.5% going to problem gambling causes in Virginia and the remaining 97.5% going into a general fund.