The Virginia Lottery reported sports wagering handle totaling $266 million for the month of July, but the bigger news involved the state being able to tax the largest percentage of operator revenue since the state began accepting bets in January 2021.
The adjusted revenue of the state’s 13 mobile operators and one retail sportsbook totaled $21.4 million, which was 82.2% of the $26 million in gross revenue (the house enjoyed a robust 9.8% overall hold for the month).
The state budget that passed in June included a legislative change that prohibited operators “from excluding bonuses or promotions used to encourage betting from their adjusted gross revenue 12 months after they begin sports betting activity in Virginia.”'The first full month of reporting since then showed a dramatic decline in promotional credits and bonus play as those established sportsbooks could no longer write off such action, and it totaled less than $400,000 in July. The previous low was just shy of $4.4 million, in July 2021. The majority of deductions this month came from adjustments, totaling $4.2 million.
July’s report marked the first time since launch that adjusted revenue accounted for at least 70% of the gross revenue, with the previous high 67.7% in June 2021. Adjusted revenue topped 60% just once in the first six months of this year, peaking at 64.7% in May.