Virginia sports wagering was down in July but that was to be expected. Sports betting action typically cools in the summer.
In July, sports betting in VA saw its handle decline to $162 million, which was a drop of 31% from June. However, the decrease in adjusted gross revenue wasn’t nearly as steep. The combined AGR for the commonwealth’s seven operators was $12.7 million, down just 14.8% from June.
Here are some takeaways from the July VA gambling report:
VA Sports Betting, July vs. June
|Change||Down 31.1%||Down 14.8%||Down 18.0%|
Strong Hold in VA
Helping to mitigate the drop in AGR (relative to the drop in handle) was that the hold in July was 12.33%; that’s generally considered fairly high. The hold in June was 9.36% and historically, sports gambling hold has been broadly in the 5% to 7% range.
Virginia sports gambling operators also reined in promotion incentives slightly in July trimming those costs to $4.38 million, down a bit from June’s $5 million.
Tax Collections SlipTax collections from sports gambling in July were $1.86 million, down 18% from June ($2.27 million). For sports gambling activity, the tax rate is 15% of the AGR but since one of the adjustments in the AGR is certain promotional costs, those player-acquisition incentives that are good for the bettors also lower tax money. Since sports betting began in Virginia in late January, the commonwealth’s tax take has been about $9.7 million.
More Operators Coming
In Virginia, seven licensed operators included in July’s report. There will be one more included in the August report, with another one on the way.
Barstool Sportsbook launched in August. Golden Nugget Online Gaming could be next to join the market.