Key Takeaways from the Virginia July Sports Betting Report

VirginiaIsForBettors.com

By Bill Ordine

Virginia sports wagering was down in July but that was to be expected. Sports betting action typically cools in the summer.

In July, sports betting in VA saw its handle decline to $162 million, which was a drop of 31% from June. However, the decrease in adjusted gross revenue wasn’t nearly as steep. The combined AGR for the commonwealth’s seven operators was $12.7 million, down just 14.8% from June.

Here are some takeaways from the July VA gambling report:

VA Sports Betting, July vs. June

Total HandleRevenue Taxes
July$161.902M$12.691M$1.864M
June$234.943M$14.897M$2.274M
Change Down 31.1% Down 14.8% Down 18.0%

Strong Hold in VA

Helping to mitigate the drop in AGR (relative to the drop in handle) was that the hold in July was 12.33%; that’s generally considered fairly high. The hold in June was 9.36% and historically, sports gambling hold has been broadly in the 5% to 7% range.

Virginia sports gambling operators also reined in promotion incentives slightly in July trimming those costs to $4.38 million, down a bit from June’s $5 million.

Tax Collections Slip

Tax collections from sports gambling in July were $1.86 million, down 18% from June ($2.27 million). For sports gambling activity, the tax rate is 15% of the AGR but since one of the adjustments in the AGR is certain promotional costs, those player-acquisition incentives that are good for the bettors also lower tax money. Since sports betting began in Virginia in late January, the commonwealth’s tax take has been about $9.7 million.


More Operators Coming

In Virginia, seven licensed operators included in July’s report. There will be one more included in the August report, with another one on the way.

Barstool Sportsbook launched in August. Golden Nugget Online Gaming could be next to join the market.

quote
WRITTEN BY
VirginiaIsForBettors.com
Bill Ordine
Bill Ordine was a reporter and editor in news and sports for the Philadelphia Inquirer and Baltimore Sun for 25 years, and was a lead reporter on a team that was a finalist for the Pulitzer Prize in Breaking News. Bill started reporting on casinos and gaming shortly after Atlantic City’s first gambling halls opened and wrote a syndicated column on travel to casino destinations for 10 years. He covered the World Series of Poker for a decade and his articles on gaming have appeared in many major U.S. newspapers, such as the Los Angeles Times, Chicago Tribune, Miami Herald and others
... Read More
Bill Ordine was a reporter and editor in news and sports for the Philadelphia Inquirer and Baltimore Sun for 25 years, and was a lead reporter on a team that was a finalist for the Pulitzer Prize in Breaking News. Bill started reporting on casinos and gaming shortly after Atlantic City’s first gambling halls opened and wrote a syndicated column on travel to casino destinations for 10 years. He covered the World Series of Poker for a decade and his articles on gaming have appeared in many major U.S. newspapers, such as the Los Angeles Times, Chicago Tribune, Miami Herald and others
... Read More