Sportsbook numbers in Virginia continue to grow after March Madness
May 2, 2022
The NCAA basketball tournament's March Madness helped boost sports betting in Virginia in March. The state's residents bet $469.4 million on sports during March, which was the second-highest total in a single month in the history of Virginia sports betting.
Despite a state law prohibiting gambling on college sports in Virginia, about a fourth of the state's sports betting revenue came from the NCAA tournament.
Sports betting experts noted that the NCAA tournament's popularity boosted the industry's activity in March. Eric Ramsey of the PlayUSA.com said that sportsbooks in Virginia saw a spike in business in March.
"The popularity of the NCAA tournament makes March among the industry's most important months, providing sportsbooks one more jump in action before the slower months begin," said Eric Ramsey.
Despite the ban on sports betting in the state, Virginia's sportsbooks performed well in March. The absence of the University of Virginia also helped boost the industry's performance. Over the past seven months, the sports betting industry in the state has experienced a rapid expansion.
The total amount of money bet on sports in the state in March was almost $470 million, a 50 percent increase from the previous year. The average amount of money won by Virginians was $14.05 million per day.
Sportsbooks in Virginia won $33.7 million in gross revenue in March, a 27 percent increase from the previous year. They also took in $14.3 million in adjusted revenue. Most of the books' money was due to promotional spending.
Through the first three months of this year, the sports betting industry in Virginia has already exceeded $4.6 billion.
The sports betting industry in the state continued to grow in March, with the year-over-year increase reaching over 50 percent for the second month in a row. Sportsbooks are expected to slow down as NBA is closing its end.
Despite the expected decline in volume over the next couple of months, the sports betting industry is still likely to continue its rapid growth. Sports events such as MLB and college football are expected to help expand the industry's customer base.
"Volume will inevitably slip over the next few months, but the industry's focus will change, too," Ramsey said. "The football season and the NCAA Tournament are prime opportunities to expand to new customers, which means more promotions. With sports such as golf taking center stage in the summer months, the industry can still fare well with less volume."
The addition of five weekends of regular season football in January and the expanded NFL playoffs helped the sports betting industry in Virginia during the first quarter.
Since sports betting was allowed in the state in late January 2021, it has already brought in over $26 million in taxes.
According to data provided by the Virginia Lottery Board, three of the state's 12 licensed operators have over 90 percent of the market during the first three months.
Among the operators that have over 90 percent of the market are FanDuel, which handled almost 40 percent of the total bets made during the first quarter, DraftKings has over 20 percent, and Caesars, which had been a distant fourth, was responsible for around nine percent of the market.