Virginia has officially been crowned as the fastest state to top one billion dollars in sports wagers. According to a report by the Virginia Lottery, a total of $1.09 billion dollars was wagered on sports events between January 21 and May 31 of this year. That breaks Tennessee’s record as the quickest sports market to hit the one-billion mark.
During the month of May alone, Virginians wagered $226.96 million, which is an average of $7.3 million per day. Gamblers reported winning just over $203 million.
The impressive figures aren’t all that surprising, given the rapid growth of sports betting options in recent months. The long list of leagues, events, and matches covers everything from basketball and football to golf and car racing.
The May report was released based on data collected from seven licensed operators:
- Betfair (partnered 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)
There is a 15% tax rate on sports betting in Virginia. It’s calculated based on each permit holder’s adjusted gross revenue or AGR, which represents the number you get after subtracting total winnings and mandatory deductions from the total wagering amount.
The operators are allowed to deduct some customer acquisition costs from AGR, as is mandated by state law. The sports betting and casino sites reported over $5.1 million in bonuses in May.
The biggest portion (97.5%) of the revenue generated by taxes on sports betting goes to the state’s general fund. Only 2.5% goes to the Problem Gambling Treatment and the Support Fund. Considering that problem gambling has been on the rise since the start of the COVD19 pandemic, the Virginia Department of Behavioral Health and Developmental Services can certainly use the money.