Betting company operators in Virginia reap substantial profits, garnering a gross income of $42 million from punters in May.

Betting company operators in Virginia reap substantial profits, garnering a gross income of $42 million from punters in May.

In Virginia, mobile sports wagering operators surpassed the $40 million mark in gross revenue for May, marking the second time they accomplished this milestone since launching in 2021. This achievement comes amid a 17.3% month-over-month increase in gross revenue, despite a 12% decline in the total wagers accepted, or handle, according to the Virginia Lottery.

The state's 14 operators reported a combined gross revenue of over $42.5 million in May, trailing only the record-breaking $48.3 million achieved in November 2021. The recent increase in revenue was buoyed by a high hold, or profit margin, offsetting the cyclical drop in handle. The operators posted a 12.1% hold for gross revenue, the fifth time they cleared 10% and the third occasion exceeding 12%.

Virginia, which conducts sports wagering exclusively online, has witnessed a 93% year-over-year rise in handle since launch, with more than $2.1 billion wagered in the first five months of 2022. The state garnered $27.5 million in gross revenue eligible for taxation by the end of May, with 15% going to state coffers, yielding an inflow of nearly $3.9 million.

Despite slightly more than half of the $179.1 million in operator gross revenue being untaxed as promotional credits or other deductions through the first five months of 2022, Virginia has accumulated more than $13.3 million in tax receipts, a $7.8 million increase compared to the same period in 2021.

Virginia has become the ninth state to surpass $5 billion in handle since its launch, joining states like New Jersey, Nevada, Pennsylvania, Illinois, Indiana, New York, Colorado, and Michigan in that select group. The state's strong growth in handle and revenue is evident in the market's upward trend, with all-time highs consistently being shattered.

According to data, Virginia's sports betting handle reached a record $761 million in November 2024, representing a 19.1% increase compared to the entire 2023 annual figure. Correspondingly, Virginia's gross sports betting revenue hit an all-time high of $80.6 million in November 2024. The tax revenue generated from sports betting has also shown a consistent upward trajectory, with the state collecting $12.1 million in taxes on adjusted gross revenue in November 2024.

The growth in Virginia's sports betting market, driven largely by its strong mobile betting segment, aligns it with some of the more dynamic states in terms of market expansion and monetization. Online/mobile betting generates the vast majority of handle and revenue, with 14 authorized mobile operators and three retail sportsbooks active as of early 2025.

In conclusion, Virginia's sports betting market continues to grow rapidly and consistently, with impressive handle and revenue gains since its launch. The market is dominated by mobile betting, making it comparable to more established states in the US sports betting landscape. Records continue to be broken, and Virginia shows no signs of slowing down.

1. The surge in Virginia's sports betting market, evident in the consecutive record-breaking handle and revenue, has been largely driven by the growth of mobile sports-betting lines, with operators offering hefty finance incentives to attract a larger audience.
2. The success of Virginia's mobile sports-betting industry, as indicated by the high gross revenue and increasing handle, has been a significant contributor to the state's finances, with a substantial portion of the revenue taxes being directed towards state coffers.

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