Sports betting revenue in Virginia falls below $40 million in February
Hey there! Let's dive into the latest numbers from Virginia's sports wagering market. Last month, the total handle clocked in at a bit over $433 million, showing a notable dip compared to January. Although it's a common pattern for the handle to decrease in February, thanks to its shorter length and the Super Bowl being the only significant NFL event, a 15.5% decline still raised some eyebrows.
Don't worry, though – operators had a solid win rate of 9.2%, managing to surpass the 9% mark for the 11th time in the past 12 months. The Virginia Lottery hasn't disclosed specific Super Bowl betting figures, so we'll have to wait to see if that event had any significant impact.
February's handle boosted Virginia to the ninth spot in terms of total handle during the post-PASPA era, a respectable achievement. When compared to February 2022, the handle saw a 7.9% increase.
Despite the drop in revenue, the state managed to bring in nearly $11 million in tax revenue through the first two months of the year, more than doubling the comparable period from 2022.
Now, for some operators, it seems there was an uptick in promotional spend in February. Virginian rules allow established mobile operators to exclude promotional spend from gross revenue calculations. However, some newer online sportsbooks, such as bet365, Hard Rock, Betway, and SI Sportsbook, may have capitalized on the Super Bowl and introductory offers to boost customer acquisition. Promotional deductions across the state reached $7.8 million, marking the highest amount since June 2022.
All in all, Virginia sports betting market is showing a positive trend compared to last year, with gross revenue for the first two months of 2023 increasing by nearly 45%. Taxes levied on this revenue more than doubled from the comparable period in 2022.
While there hasn't been any explicit confirmation on the factors causing Virginia's revenue decline in February, common industry trends such as market saturation, economic conditions, regulatory changes, the sports calendar, and operational changes could all play a role. For more precise insights on Virginia's unique betting landscape, it's best to consult official statements from the Virginia Lottery or the state's sports betting regulator.
Operators might have focused on line offerings for popular sports, such as football, during the Super Bowl to attract customers, potentially contributing to the increase in promotional spend last month. Despite the decrease in the sports-betting handle, some sportsbooks managed to wager a significant amount during the competition.
