Virginia’s sports betting market reached new heights in October, with total wagers hitting $696.1 million, the highest monthly handle since the state legalized the activity.
The figure represents a 21.8% increase compared to October 2023’s $571.4 million and a 6.6% rise from the previous record of $652.9 million set in January 2024. October’s handle also surpassed the $622.1 million wagered in September by 11.9%, according to data from the Virginia Lottery.
The vast majority of bets were placed online, with digital platforms accounting for $692.2 million of the total handle. Retail betting, in contrast, contributed $3.9 million.
However, despite the surge in wagering activity, adjusted gross revenue (AGR) saw a decline, falling to $49 million, a 13.1% decrease year-over-year and a 25.6% drop from September’s $65.9 million.
Of the total AGR, $48.8 million came from online betting, while retail operations added $232,925. The Virginia Lottery noted that 11 out of 13 licensed mobile operators and three casinos reported positive AGR, though a detailed breakdown by operator was not provided.
The overall hold rate —the percentage of wagers retained by operators— was 7.04% in October, marking a drop from September’s 11.5% and last October’s 11.2%. The online hold rate stood at 7.05%, while retail betting held 5.93%.
Industry analysts suggest that the decline in revenue could be attributed to player-friendly outcomes in NFL betting during the early fourth quarter. DraftKings and other major operators have recently highlighted the impact of NFL results skewing in favor of bettors.
The state collected $7.3 million in taxes from sports betting during November, derived from a 15% tax on AGR. The majority, 97.5%, was allocated to Virginia’s General Fund, while the remaining 2.5% was directed to the Problem Gambling Treatment and Support Fund.
Original article: https://www.yogonet.com/international/news/2024/11/29/86966-virginia-sports-betting-hits-record-handle-in-october-but-revenue-declines-
