Virginia Sports Betting Shows Growth in October 2023

Virginians placed bets totaling $571.4 million, marking an 8.2% increase from the previous October. This enthusiastic participation reflects the growing interest in sports betting within the state.

Operators’ Revenue and State Tax Implications

The report reveals that bettors won a total of $507.4 million, resulting in an 11.20% win percentage for operators. State law imposes a 15% tax on sports betting activity based on each permit holder’s adjusted gross revenue (AGR), which is calculated as total wagers minus total winnings and other authorized deductions.

The detailed financial breakdown for October 2023 includes:

• Gross sports gaming revenues: $571.4 million
• Gross winnings: $507.4 million
• Allowable bonuses and promotions deductions: $2.8 million
• Other deductions: $4.8 million
• AGR: $56.4 million

Tax Contributions to State Funds

The state tax on sports betting AGR led to considerable contributions in October. Of the total tax amounting to $8.6 million, 97.5% is allocated to Virginia’s General Fund, while 2.5% goes to the Problem Gambling Treatment and Support Fund. Specifically, $8.3 million will support the General Fund, and approximately $214,000 is directed towards addressing problem gambling.

Nine operators reported a net positive AGR for October 2023. This robust performance not only demonstrates the competitive nature of the sports betting market in Virginia but also underscores the significant economic impact of this sector on state revenues.

Our Comment on the Article

The October 2023 report from the Virginia Lottery is a clear indicator of the vibrant and expanding sports betting landscape in Virginia. The increased handle reflects the growing popularity of sports wagering among Virginians, while the substantial tax contributions highlight the sector’s positive fiscal impact.

The state’s strategic allocation of these funds, especially towards problem gambling initiatives, demonstrates a responsible approach to managing the growth of this industry.

With nine operators contributing positively to the state’s economy, the future of sports betting in Virginia looks promising, offering a dynamic blend of entertainment, economic benefit, and responsible gaming support.