Virginia Sports Betting Hits Record $696.1 Million in October

Virginia’s sports betting market set a new high in October, with the handle reaching $696.1 million, according to the Virginia Lottery. This milestone reflects a 21.8% increase compared to October 2023’s $571.4 million and an 11.9% growth over September 2024’s $622.1 million. The previous record of $652.9 million, set in January, was surpassed by 6.6%, signaling robust engagement among bettors as the NFL season drove heightened activity.

Online betting remained the dominant channel, contributing $692.2 million to the total handle. Retail betting accounted for a much smaller portion at $3.9 million. The overwhelming preference for online wagering aligns with broader trends in sports betting, where mobile and desktop platforms offer convenience and accessibility. Despite the record-breaking handle, adjusted gross revenue (AGR) fell to $49.0 million, representing a 13.1% decline from October 2023 and a significant 25.6% drop from September 2024’s $65.9 million.

The hold, or the percentage of wagers retained by operators as revenue, stood at 7.04% in October. This marks a notable decrease from September’s 11.5% hold and October 2023’s 11.2%. Online betting achieved a hold of 7.05%, slightly higher than the 5.93% reported for retail betting. These declining figures suggest that players, particularly those wagering on NFL games, saw more favorable outcomes. This trend aligns with warnings from operators like DraftKings, who have noted that early Q4 results for NFL betting have skewed in favor of customers.

Virginia’s tax revenue from sports betting totaled $7.3 million in October, with 97.5% allocated to the state’s General Fund and the remaining 2.5% directed to the Problem Gambling Treatment and Support Fund. These contributions underscore the dual role of sports betting as both a source of entertainment and a funding mechanism for state initiatives.

The market currently features 13 licensed mobile operators and three casinos offering sports betting. While the Virginia Lottery does not release detailed performance data for individual operators, it reported that 11 mobile operators and all three casinos recorded net positive AGR for October. This indicates that most operators managed to maintain profitability, even amid declining margins.

October’s performance underscores the complexities of the sports betting industry. The record handle reflects strong consumer interest, likely driven by the NFL season and increased operator competition. However, the decline in AGR highlights the volatility operators face, particularly when player outcomes disrupt expected profit margins. With player-friendly NFL results continuing to impact performance, operators may need to adjust strategies to navigate the balance between player engagement and profitability.

 

Virginia’s sports betting market hit a record $696.1 million handle in October, but adjusted gross revenue fell 13.1%, reflecting player-friendly NFL outcomes and highlighting the industry's volatility

 

The Future

The record-setting handle also demonstrates the growing popularity of legal sports betting in Virginia, as more residents and visitors participate in wagering. The combination of expanded market access, promotional offers, and the excitement of live sports has contributed to this upward trend. However, the revenue challenges in October signal that sustained growth in handle does not always translate to higher profits, especially when player outcomes weigh on operator returns.

As Virginia’s sports betting market matures, stakeholders will closely monitor these dynamics. October’s figures stand as a milestone for engagement while raising questions about the sustainability of revenue growth in a rapidly evolving industry. The months ahead will reveal whether these trends are temporary or indicative of longer-term shifts in the market.