Virginia Operators Beat Bettors, Post $42M in May Gross Revenue

Mobile sports betting operators in Virginia passed the $40 million gross revenue mark in May – just the second time they have done so in 17 months since launch – with strong restraint offsetting the decline cycle of betting management.

The Virginia Lottery reported that the state’s 14 operators combined to claim more than $42.5 million in gross revenue for May, which is only higher than the $48.3 million raised last November. The 17.3% month-over-month increase in gross revenue came despite a 12% drop in the handle to $351.5 million from $399.5 million in bets accepted in April .

Operators posted a 12.1% gross revenue holdback, which only trailed last July’s 12.3% pass rate. This is the fifth time Virginia Sportsbook has cleared 10%, and the third time it has been above 12%. The Old Dominion remains a state with a high promotional game, although May marked the first time in nine months that operator credits were less than $ 10 million – but just barely 33,000 $ less than eight digits.

Other deductions, including the deferral, subtracted an additional $5 million from taxable income. The state claimed 15% of the $27.5 million eligible for tax, resulting in an influx of nearly $3.9 million into Virginia’s coffers. Although just over half of the operator’s $179.1 million in gross revenue will not be taxed in the form of promotional credits or other deductions in the first five months of 2022, Virginia still has accumulated more than $13.3 million in tax revenue, nearly $7.8 million more than the corresponding period in 2021.

To manage milestone and income notes

Virginia also became the ninth state to top $5 billion since launch, joining New Jersey, Nevada, Pennsylvania, Illinois, Indiana, New York, Colorado and Michigan in that select group. . The Old Dominion, which runs exclusively online sports betting, saw a 93% year-over-year increase with more than $2.1 billion wagered in the first five months of the year.

This increase led to total gross and adjusted year-to-date revenue more than doubling compared to the same period in 2021. Adjusted revenue of $88.7 million is 157.7% higher than those of last year, which more than doubled tax revenue.

May marked the first time this year that adjusted earnings made up more than 60% of gross earnings and only the fifth time overall. The ratio of 64.7% is the third best overall and the highest since the all-time high of 67.7% last June. Part of that revenue is driven by aggressive carrier promotional spending, which totaled nearly $68 million this year, a 65.6% increase from the same five-month period in 2021.

The Virginia Lottery does not disclose management and revenue figures by operator or sport, but noted that five operators – the same number as April – ended with net positive adjusted income that made them eligible for payment. taxes.