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Sports betting in Virginia tops $1 billion

Kiosks like this one at Capital One Arena in Washington, D.C., will soon be a familiar sight to...
Kiosks like this one at Capital One Arena in Washington, D.C., will soon be a familiar sight to Phoenix sports fans. The Fan Duel retail sportsbook inside Phoenix Suns Arena will allow for a variety of bets, including those on women's sports.(William Hill Sportsbook via Cronkite News)
Published: Jul. 1, 2021 at 3:08 PM EDT
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RICHMOND, Va. (WDBJ/Virginia Lottery Release) - The Virginia Lottery has released its report on sports wagering activity submitted by licensed operators for the month of May, the fourth full month of reporting since legal sports betting launched in Virginia January 21.

Between May 1 and May 31, 2021, Virginians wagered $226,963,573, according to lottery officials, and won $203,790,024, for a combined 10.21% operators’ win percentage.

Virginia’s sports betting catalog of approved leagues and events continues to expand, and through the end of May, bettors have wagered a combined total of more than $1 billion on everything from golf, football and motor sports to soccer and basketball.

The seven licensed operators included in May’s reporting were Betfair Interactive US LLC (FanDuel) in partnership with the Washington Football Team, Crown Virginia Gaming LLC (Draft Kings), BetMGM LLC, Rivers Portsmouth Gaming LLC (Rivers Casino Portsmouth), Caesars Virginia LLC (William Hill), WSI US, LLC (Wynn) and Unibet Interactive, Inc.

A complete list of all approved operators can be found here, under the “approvals” tab.

State law places a 15% tax on sports betting activity based on each permit holder’s adjusted gross revenue, which is defined as total wagers minus total winnings and other authorized deductions. Virginia’s statute allows operators to deduct certain customer acquisition costs from AGR, and lottery officials say operators reported more than $5.1 million in bonuses and free-play incentives in May:

Gross sports gaming revenues

May 2021: $226,963,573

Inception to Date: $1,092,137,212

Gross winnings

May 2021: ($203,790,024)

Inception to Date: ($1,007,122,612)

Bonuses and Promotions

May 2021: ($5,168,732)

Inception to Date: ($40,569,196)

Other deductions

May 2021: ($2,341,616)

Inception to Date: ($10,024,418)

AGR (Adjusted Gross Revenue)

May 2021: $15,663,201

Inception to Date: $34,420,986

Four operators reported net positive AGR for May, and the associated tax collections are as follows:

Total Tax

Monthly Taxes: $2,381,115.69

Inception to Date: $5,557,054.31

General Fund Allocation

Monthly Taxes: $2,321,587.80

Inception to Date: $5,418,127.95

Problem Gambling Treatment and Support Fund Allocation

Monthly Taxes: $59,527.89

Inception to Date: $138,926.36

Of the state tax on sports betting AGR, according to lottery officials, the statute specifies 97.5 percent is to be deposited in the state’s General Fund and 2.5 percent is to be deposited into the Problem Gambling Treatment and Support Fund administered by the Virginia Department of Behavioral Health.

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