This surge came largely from the kickoff of college football season, a major draw in a state known for its passionate college sports following. Despite a slight dip in hold percentage to 9.6% for August — breaking a four-month streak in double digits — operators still managed to pull in $40.1 million in gross revenue, up 24.1% from the previous year.
The state’s 15% tax on this revenue translated to a hefty $5.2 million in tax contributions for August, underscoring sports betting’s growing impact on Virginia’s finances.
The Virginia Lottery’s August figures also reveal the increasingly dominant role of VA online sports betting, which made up nearly $414.8 million of the month’s handle. Meanwhile, retail betting, though smaller in scale, posted a respectable handle of $1.9 million, marking an 18.7% month-over-month increase.
As Brendan Dwyer, director of research at Virginia Commonwealth University’s Center for Sport Leadership, noted, the industry’s expansion reflects a growing comfort with sports betting among fans:
“I think we are still having new sports fans feel comfortable sports betting,”
he said, hinting at further potential growth as more bettors embrace the practice.
Operator Exits Shift Virginia’s Betting Landscape
Despite these impressive numbers, Virginia’s sports betting market has seen substantial changes in its roster of operators. The industry has contracted this year with five sportsbooks — Betfred, Unibet, SI Sportsbook, Betway, and SuperBook — all exiting the state.
Betfred, a UK-based sportsbook, announced it would no longer operate in Virginia as of October 21. This decision was part of Betfred’s broader U.S. exit, as it now aims to focus on just four states. In Virginia, Betfred had struggled to gain traction, capturing only around 0.1% of the market share.
The operator’s limited success highlights the challenges faced by smaller brands in a highly competitive landscape dominated by major players like FanDuel VA and DraftKings VA.
Betfred’s departure, along with the other exits, reflects a trend among smaller sportsbooks to either scale back to select markets or exit the U.S. market altogether. Promotional expenses, which help attract customers, can erode revenue for these smaller players, limiting their ability to compete with larger, better-funded operators.
Still, the exits are unlikely to dent Virginia’s overall sports betting handle or tax revenue, given the continued success of established sportsbooks in the state.
New Players Enter and Adapt to Virginia’s Market
While some sportsbooks are leaving, new operators are entering Virginia and adapting to the demands of the local market. Sporttrade, a betting exchange platform, launched in Virginia with approval from the Virginia Lottery, offering a distinct approach with its in-play betting focus and a sleek mobile experience.
As Alex Kane, Sporttrade’s CEO, explained, the platform caters to fans seeking
“premium betting…for instant in-play betting, and a mobile experience that’s sleek and intuitive.”
While currently only available on iOS, Sporttrade is expected to expand to Android soon, bringing its exchange-based model to more Virginia bettors.
As the industry evolves, lawmakers and experts are increasingly aware of the potential risks associated with sports betting, particularly among younger populations. According to Carolyn Hawley, president of the Virginia Council on Problem Gambling, signs of problem gambling are on the rise, with younger bettors dominating the calls to the state’s gambling helpline.
This trend has led to bipartisan legislative efforts, such as the proposed SAFE Bet Act, to introduce measures like a national self-exclusion list, aiming to mitigate the impact of sports betting addiction.
