October 2024 marked a significant milestone with VA sports betting operators collecting $696 million in wagers, a 21.8% year-on-year increase. While mobile platforms overwhelmingly dominated the market, accounting for 99% of the handle, retail sports betting contributed a modest $3.9 million.
The adjusted gross revenue, however, saw a decline to $49 million, down from the previous year’s October figure of $65.9 million, primarily due to a drop in the hold percentage from 11.2% to 7.8%.
Economic Gains and Rising Concerns
Virginia’s embrace of sports betting has been lucrative for state coffers, with $7.3 million in taxes collected in October alone. These funds are crucial in bolstering the state’s General Fund and the Problem Gambling Treatment and Support Fund.
However, this success comes with a caveat. Since the legalization of sports betting in 2021, problem gambling concerns have surged. The Virginia Council on Problem Gambling (VCPG) reported over 10,000 helpline calls in 2023, a staggering 973% increase from 2019.
Ragan McManus, deputy director of Strength in Peers, a recovery organization, highlighted the intersection of gambling addiction with broader mental health challenges.
“We’ll look at addiction from a holistic view,”
McManus explained.
“What are the things that are making you unwell, both physically, emotionally, and spiritually?”
The rising concerns underscore the need for a balanced approach to regulating this booming industry, ensuring that the economic benefits do not overshadow the societal risks.
Petersburg Casino Approval: A Transformative Economic Opportunity
While sports betting thrives, another pivotal moment for Virginia unfolded in November as Petersburg residents overwhelmingly approved the construction of a $597 million casino by The Cordish Companies. With an 81.5% approval rate, voters decisively embraced the project, which promises a 200-room hotel, dining, entertainment, and a transformative economic impact.
The journey to this decision was not without controversy. Initially, Richmond, the state’s capital, was slated for casino development. However, Richmond voters rejected the proposal twice, in 2021 and 2023, paving the way for Petersburg to vie for the opportunity.
The Petersburg City Council awarded the license to Cordish in a no-bid process after earlier competitive bids from companies like Bally’s and Penn Entertainment were dismissed.
Despite the controversies, the project’s economic potential is undeniable. Supporters argue that the casino could generate $2.8 billion in economic impact over the next decade, alongside $240 million in tax revenue for Petersburg.
Construction is expected to proceed in two phases, with the first set to open within a year, providing a much-needed economic boost to the central Virginia town.
Brendan Bussmann, managing partner of B Global, expressed optimism about gambling expansion in the region.
“Gaming in states where it’s already been approved at the ballot will continue to see that in the foreseeable future,”
Bussmann stated, reinforcing the trend of voter-backed gaming initiatives.
Virginia’s dual embrace of sports betting and VA casino gaming reflects its strategic pivot toward leveraging gambling as a cornerstone of economic growth. However, the state’s challenge lies in balancing this financial windfall with addressing the societal costs tied to gambling.
As Petersburg prepares for its casino debut and the sports betting industry continues its upward trajectory, the Old Dominion stands at a crossroads — one where opportunity and responsibility must converge to shape its future.
