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Virginia Becomes the Fastest US State to Cross $1B in Sports Bets
By Jeff Osienya Jul 06, 2021 IndustryVirginia beats Tennessee’s record after sports fans spent $1.1 billion on wagers in a little over four months since sports betting was legalized. Tennessee had taken six months to reach the billion-dollar milestone.In just four full months of regulated sports betting activity, the Commonwealth of Virginia has achieved the impossible by collecting more than $1 billion worth of sports wagers. This officially makes Virginia the fastest gambling-legal USA state to see a ten-figure handle within such a short period. Since launching its regulated sports betting market in late January, the Old Dominion has seen a total of $1,092,137,212 in wagers up until the end of May, according to the latest report from the Virginia Lottery.
The previous title-holder to achieve the billion-dollar milestone the quickest was the neighboring Tennessee, which got there after six full months of sports betting activity, from November 2020 to April 2021. And before the Volunteer State nabbed the bragging rights, New Jersey, the overall USA sports betting champion, had set a record of crossing the ten-figure mark in seven full months of action – from June 2018 to January 2019.
A Stellar Performance Against All Odds
According to Jessica Welman, the Old Dominion made its entry into the world of regulated sports betting at a less than ideal time but still managed to beat the odds and shine bright. Jessica Welman is an analyst for the PlayUSA Network, and she was quoted saying:
Quote“The launch of sports betting in Virginia has gone about as smoothly as could have been expected. Launching just in time for the Super Bowl got the market off on the right foot. But the state’s sportsbooks still reached the $1 billion milestone mostly without the benefit of football and during two months when sports betting typically slows. That makes the record all the more impressive.”
Indeed, the Commonwealth’s milestone is no mean feat, given that April and May are known to be slow months for sports betting in the USA. In fact, compared to April, Virginia’s sports betting handle went down by 4.4% in May, from 236.4 million in April to $227 million in May.
If we shine the spotlight on the 10 leading US sports betting markets, the general trend was roughly the same as Virginia’s from April to May. Michigan, Tennessee, and Pennsylvania, for example, all recorded slightly higher dips. The Wolverine State experienced a 6.0% handle slide, while both the Volunteer State and the Keystone State each saw a 6.7% drop in wagers from April to May.
Iowa’s decline was, however, much lower with a 2.9% drop, whereas the states that had a month-to-month improvement failed to see double-digit growth. With an 8.9% uptick, New Jersey led the pack, followed by Indiana after a 7.6% rise, and lastly Colorado with a handle increase of only 1.9% from April to May.
Further, looking at March vs. April, Virginia had already suffered a decline, with wagers going down by as much as 22.1% from March to April. Likewise, all the top 10 US sports betting states also saw double-digit handle plunges, between 13% and 30.5% over the same period.
The slow months aside, the other reason why the Old Dominion has impressed many in the USA’s sports betting industry with the $1.1 billion handle is the fact that betting on in-state college teams is prohibited. Had the state allowed betting on Virginia Cavaliers in March Madness, for instance, and other local college teams, the handle would certainly have been higher. Dan Stupp, another PlayUSA analyst, addressed the college betting question after the Commonwealth’s performance report was published by the Virginia Lottery. He said:
Quote“Virginia’s record-setting start has come in spite of its wagering ban on in-state college teams, which is essentially leaving money on the table. Hopefully the ban will eventually be addressed, but even with it, Virginia’s young industry remains in excellent overall health.”
Casino Revenue Climbs Despite Handle Decline
Even though there was a drop in the volume of sports wagers from April to May, gross gaming revenue (GGR) for the operators went up. In May, sportsbooks won $23.2 million, 19% higher than April’s GGR, which was $19.4 million. As a result, the adjusted gross revenue also rose from $13.8 million in April to $15.7 million in May. Overall, since the debut of Virginia’s regulated sports betting market, licensed sportsbooks have generated $85 million in GGR.
Looking at the state’s share of the proceeds, operators paid a total of $2.4 million to the Commonwealth in May, which included nearly $60k that was channeled to support problem gambling initiatives. All in all, from late January to May 31st, a total of $5.6 million has been directed to the Old Dominion’s coffers from regulated sports betting in the form of taxes.
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