Virginia Sports Betting Hits Highest Hold Since 2022

April 3, 2025 – Richmond, VA – Virginia’s sports betting industry saw significant gains in February, as the state reported a noteworthy increase in both revenue and handle compared to the same month in 2024. The February figures, released on April 1 by the Virginia Lottery, reflect not only the state’s growing appeal as a sports betting hub but also its resilience after the seasonal dip typically seen post-holidays.

In February, Virginians placed a total of $556.8 million in sports wagers, a 2.2% increase from February 2024. However, the total handle for the month fell by 24.4% compared to January 2025, which is consistent with the post-Super Bowl lull that typically affects many states.

Of the total amount wagered, $553 million came from online platforms, while the remaining $3.8 million was placed at the state’s retail sportsbooks. Despite the drop from January, the volume of online wagers continues to dominate, highlighting the ongoing trend towards digital sports betting.

A Strong Revenue Boost

Despite a decline in total handle from January, February’s adjusted gross revenue (AGR) surged to $61.9 million, marking a remarkable 39.1% year-over-year increase. The online segment again led the charge, contributing $61.7 million of the total revenue. Retail sportsbooks accounted for a mere $206,590, reflecting the continued preference for online betting among Virginia’s sports betting population.

The increase in revenue is partly attributed to the state's high hold percentage, which rose to 11.12% in February, the highest it’s been since September 2022, when it reached 11.77%. The online hold was particularly strong, reaching 11.16%, while the retail hold stood at a modest 5.41%. The increase in hold percentage suggests that bettors may have faced a more challenging landscape in February, with fewer high-profile wins compared to previous months, driving the state's revenue growth.

As the sports betting market matures, the tax revenue generated by the state continues to rise. February’s sports betting tax revenue reached $9.3 million, a sign of the growing financial importance of the industry in Virginia. Of this amount, $9.1 million was allocated to the General Fund, while the remaining $232,599 was directed toward the Problem Gambling Treatment and Support Fund. This tax revenue helps support both general state initiatives and programs aimed at assisting individuals affected by gambling addiction.

While the Virginia Lottery has not disclosed specific operator performance details, the market was active with 14 online operators and three retail sportsbooks in February. The highly competitive nature of the market, driven by a range of online platforms, ensures that consumers have diverse betting options, but also means operators must continue to innovate and offer competitive odds and promotions to maintain market share.

 

Despite a decline in total handle from January, February’s adjusted gross revenue surged to $61.9 million, marking a remarkable 39.1% year-over-year increase, driven largely by a high hold percentage and the continued dominance of online betting in Virginia.

Looking Ahead

The year-on-year growth in both handle and revenue is encouraging for Virginia’s sports betting sector, but the overall monthly decline from January signals the challenges operators may face in sustaining growth through the off-season. With March Madness behind them and major sporting events like the NFL Draft on the horizon, the state's betting industry may see a rebound as these events generate more interest and activity.

As more states adopt and refine sports betting frameworks, Virginia will need to maintain a balanced approach, addressing concerns like responsible gambling while ensuring robust revenue streams. The industry’s long-term success in the state will depend not just on the size of the handle but also on the quality of the regulatory environment and the ability to attract and retain both bettors and operators.

With a strong start to 2025 and signs of growth in both revenue and participation, Virginia's sports betting market seems poised to continue its upward trajectory in the coming months. As the state’s legal sports betting landscape matures, the February figures provide a solid foundation for the industry’s future.