Virginia’s Sports Betting Handle Sets a New Revenue Record
The Virginia Lottery released its monthly sports betting numbers for November. November’s sports betting handle signifies that the handle was the second-highest in its history since the operation began in January.
Virginia Sets a New Revenue Record in November
Virginia’s sports betting handle surpassed the $400 million mark for the month with a handle of $402.6 million.
With the heavy volume in wagers placed for the month, sportsbook operators saw approximately $48.3 million combined revenue. This is an all-time high in the revenue category since the launch of its sports betting market.
November’s revenue figures easily topped the previous record set in September that showed $30.9 million. November’s sports betting handle numbers were just behind the record set in October.
The amount noted a six percent decrease when comparing the two months.
Sportsbooks that operate in the state spent approximately $14.9 million in promotions to engage more sports bettors across the state.
Dann Stupp, lead analyst for PlayVirginia.com, stated, “When football and basketball seasons converge, as they did in November, the inventory of games creates a ripe opportunity for sportsbooks…Importantly, it shows that Virginians have more diverse interests than just football, a sign that sportsbooks won’t be giving up the gains made over the past three months once the football season ends.”
The average daily betting volume slightly dropped from $13.8 million to $13.4 million in a month. However, for the fourth time this year, sportsbook operators had a hold rate above ten percent.
Gross revenue was also at 12.01 percent, which was the second-highest since July, which posted a gross revenue rate of 12.33 percent.
The 12.01 percent ranks 10th among the 18 other states that have released their monthly sports betting handle numbers. Some of the results were due to bad luck when placing bets on NFL games. Other times, in-game or live betting often yields a higher return than placing a bet pre-game.
Eric Ramsey, an analyst for the PlayUSA.com Network, stated, “A higher hold percentage is additional evidence that the market is maturing…Not only have sportsbooks gained more customers, particularly over the last three months, but bettors are becoming more at ease with less conventional forms of betting.”
Looking at Virginia’s Sports Betting Market Going Forward
November had one less week of NFL and college football but yielded more revenue for the month in the Virginia sports betting industry. Still, over the last three months, sportsbooks that operate in Virginia have generated $109.4 million in revenue on over $1.1 billion in accepted wagers, which produced $7.5 million in state taxes.
Sportsbooks in Virginia were able to mitigate the losses from football due to the help of the NBA and college football. Also, more sportsbooks are looking to be licensed to operate in the state moving forward.College football helped mitigate Virginia’s revenue lost.
Bally Bet entered the state in November and became the tenth sportsbook to establish a presence in the sports betting market.