The Virginia Lottery reported a record sports wagering handle for November on Friday, but operators were unable to fully capitalize on the increased action as the betting public limited them to their third-worst hold in 35 months of legal wagering.
It was the second consecutive month the Old Dominion posted a record handle, with November’s total 11.8% higher than the PASPA era.
Operators reported just over $43 million in gross revenue, with all but $472,577 coming viaunder 9.2% in February and the lowest since an all-time low of 4.6% in February 2021 during the first full month of legal betting.
The state was able to levy taxes on $36.4 million in adjusted gross revenue, as operators claimed nearly $1.5 million in promotional deductions and another $5.2 million from the federal excise tax and monthly carryovers of negative AGR. The state had an inflow of $5.5 million into its coffers, as 10 operators finished with a net positive AGR in November.
Virginia has received more than $63.8 million in state taxes from sports wagering in 2023, which is running $19.1 million ahead of last year’s total heading into the final month of the year.
What will ESPN BET’s net AGR be? 2k2z6n
Running NOVEMBER Top 10 #SportsBetting handles by state:
1 New York $2.12B
2 New Jersey $1.62B
3 Penn. $934.1M
4 Nevada $921.2M
5 Mass. $654.4M
6 VIRGINIA $638.8M
7 Michigan $584.1M
8 Maryland $550.7M
9 Tenn. $515.5M
10 Indiana $513.7M#sportsbettingtwitter #GamblingTwitter— Chris Altruda (@AlTruda73) December 29, 2023
The Virginia Lottery does not disclose handle and revenue information in its monthly releases, but a spokesperson confirmed that ESPN BET is not allowed to deduct its promotional credits and bonuses against its gross revenue. That is because ESPN BET is a rebrand by license-holder PENN Entertainment, whose Barstool-branded sportsbook operated in the Old Dominion for more than 12 months.
That left minus-$4.5 million in adjusted gross revenue.
Even if it is not able to deduct promotional play against gross revenue, ESPN BET likely made its presence known in Virginia with a heavy spend. There was a combined $43.9 million in bonuses and credits offered by ESPN BET across Michigan — three states that are also in the top 10 when it comes to national monthly handle rankings.
Year-over-year numbers show solid growth 6d2i31
Even with the dramatic falloff in gross revenue in November, Virginia-based operators have claimed $496.6 million in gross winnings in 2023 — an increase of 15.3% versus the same period last year. Adjusted gross revenue has surged nearly 40% to $420.5 million.
The year-to-date hold on $4.96 billion handle is just over 10%, an increase of more than a quarter of a percentage point. Handle is up 12.4% compared to the first 11 months of 2022, as the Old Dominion became the ninth state to sur $13 billion in all-time handle with November’s record action.
