Virginia’s licensed sportsbooks pulled in $64.5m in adjusted gross revenue during September. That’s down 2.1% from the same month last year, according to Virginia Lottery figures released this week.
The state’s 14 mobile operators generated $63.6m of that total. But their revenue actually fell 2.6% compared to September 2024. The three retail casinos did better, bringing in $891,650, a 55.9% jump from last year.
FanDuel and DraftKings continue to dominate Virginia’s mobile market. They account for most of the state’s online betting activity.
Why Revenue Fell Despite Higher Betting Volume
Here’s the puzzle: Virginians bet more money but operators made less. Total handle reached $737.2m, up 18.5% year-over-year. The NFL season kickoff in September typically drives this surge.
The win percentage tells the story. Operators kept just 9.46% of total wagers as revenue. That’s lower than typical margins in most months. Bettors walked away with $667.4m in winnings.
Mobile platforms processed $731.5m in bets, up 18.3%. Retail locations took $5.6m in wagers, climbing 50.8%. So betting volume grew across both channels, but favourable results for players cut into operator margins.
What This Means for State Tax Revenue
Virginia collected $9.4m for its General Fund from September’s betting activity. The state also received $241,700 for its Problem Gambling Treatment and Support Fund, which the Department of Behavioral Health and Developmental Services manages.
The 15% tax rate applies to each licensed operator’s adjusted gross revenue. This creates steady income for the state even when operators have tougher months.
All 17 license holders, 14 mobile and three retail, contributed to September’s tax haul. The state doesn’t break down individual operator performance.
How Virginia’s Market Compares Nationally
Virginia’s September numbers highlight a trend playing out across multiple states. Handle keeps climbing as sports betting becomes more mainstream. But operator margins don’t always follow.
The retail sector’s 55.9% revenue growth stands out. It suggests Virginia’s three casino sportsbooks are finding their footing. Retail typically captures less than 1% of total state handle but can deliver higher margins than online betting.
The state’s mature market status shows in these results. Year three or four operators often face pressure on promotional spending while competition remains intense. Virginia launched legal sports betting in January 2021.
Mobile dominance continues. Online platforms handled 99.2% of September’s total betting volume. That mirrors patterns in most regulated US markets where convenience drives player preference.
