The Virginia Lottery has revealed licensed operators processed $58.9m in sports bets during the first 11 days of legal activity in the US state, but adjusted gross revenue (AGR) amounted to a loss of $3.2m.
Virginia officially opened its regulated sports betting market on January 21 when Flutter Entertainment-owned FanDuel launch its sportsbook in the state via a partnership with the Washington Football Team.
Crown Virginia Gaming, partnered with DraftKings, and BetMGM were awarded permits on January 24, while Portsmouth Gaming Holdings and Rivers Casino Portsmouth followed on January 26. Caesars Virginia (William Hill US) was also granted a permit on January 27, but did not launch until February.
In this opening period, revenue after customer winnings amounted to $3.6m, with players having won a total of $55.3m from $58.9m in wagers.
However, in terms of AGR, operators made a $3.2m loss. This is calculated after accounting for any bonuses and promotions offered by licensees, as well as other deductions. This was due to $6.3m in bonuses and promotions for the 11-day period and $478,612 in other costs.
Virginia also has a 15% tax on each operator’s AGR and, despite three of the four licensees that launched in January having reporting negative AGR for the month, the state was still able to collect $39,710 in tax.
The Virginia Lottery noted that as it expects bonuses and promotional expenses tied to customer acquisition to decline considerably, this will increase both AGR and tax revenues to a more sustainable level as the market progresses.