Virginia’s Handle of Sports Betting in Its First 11 Days Gets to a Total of $59 MillionMarch 13, 2021 Matt Speakman
Regarding the Virginia Lottery’s announcement of a preliminary study on the state’s online sports betting industry, sports wagering in the State of Virginia appears promising. The state accumulated $58.9 million in handling in the first week and a half since the industry’s start on January 21, according to the survey.
Four wireless networks – FanDuel, DraftKings, BetMGM, and BetRivers – launched at various times between January and early February, resulting in these massive figures. This is a fantastic result for a newly legalized industry, which analysts expect would generate more than $150 million in handle in the first month.
Virginia began offering sports wagering on January 21, right before the state of Michigan.
Because of its affiliation with the football team of Washington D.C., FanDuel, located in New York, was the first operator to start operations right on the first day. Thanks to a state statute that favors professional sports clubs, FanDuel was the primary director for the first three days. Nevertheless, DraftKings was the first to enter the industry on January 24, followed by BetRivers and BetMGM on January 27. Although William Hill located in the UK, which was recently purchased by Caesars Entertainment, received a permit the next day, it has yet to open.
The fourth sportsbooks accounted for almost $3.6 million in gross sales, resulting in a 6.09 percent lock. However, the intense discounts and incentives associated with the introduction of sports betting in a new state totally wiped out the gains, with three operators reporting negative consolidated gross revenue (AGR) totaling approximately -$3.2 million.
Sports Betting in Virginia Licenses Might Increase
The Virginia Lottery study did not include a summary of sales results by sportsbook providers. Rather, it simply stated that only three operators had unfavorable AGR in January due to initial advertising costs, only a few operators, and also the length of time in the original reporting period.
The operator who made a profit charged $39,710 in taxes, implying that the sportsbook’s turnover was about $265,000, based on Virginia’s 15% AGR tax limit.
Under current state law, Virginia will issue up to eight additional sports betting licenses, which will help the state avoid a revenue shortfall in the coming months. Around 25 of sports betting companies submitted applications for licenses, however, the Virginia Lottery has stayed tight-lipped about the applicants, especially in terms of naming them.
Two proposals aimed at expanding the state’s sports gambling industry are now making their way to Virginia Governor Ralph Northam.
As a result of these efforts, the number of licenses available could be increased, theoretically allowing any of these candidates, or even unrestricted online operators, to be awarded sports betting licenses.
Michigan Made a Total of $115 Million in the First Days of Sports Betting Operation
Michigan and Virginia have also become great contributions to the US industry of sports betting, with the former being considered one of the best in its early stages. These jurisdictions can see continued development and have the opportunity to combat the country’s top sports gambling markets.
Michigan started offering sports betting right after Viriginia did. Michigan sports betting had a total handle higher than $115 million in the first 10 days. The Wolverine State has introduced the online casino gambling, in addition to online sports betting.
Just like Virginia had an excellent start but low sales, Michigan had a comparable case, with 6 of a total of 11 companies making a profit, thanks in part to the strong discounts that come with newly introduced sports gambling jurisdictions.