The Old Dominion became the 10th state to have a monthly handle surpass a half-billion dollars, easily bettering its previous record of $485.5 million, set in January. Virginia also became the ninth state to clear $7 billion in all-time handle in the post-PASPA era, which began in May 2018.
Operators reported $51.2 million in gross revenue to mark the first time gross revenue topped $50 million in back-to-back months. That figure was 3.4% lower than September’s record $53.8 million, as the 9.7% hold for October, though solid, was more than three full percentage points lower compared to the all-time high of 13.1%.
Promotional credits were less than $1 million for the second time in four months, with the $963,187 awarded barely half of September’s $1.7 million. Adjusted revenue carryovers and other deductions for operators totaled $5.6 million, leaving the state eligible to tax $45.5 million in adjusted revenue.
Tax coffers filling faster since rule change
Han: $3,893,060,312 (⬆️62.7%)
GGR: $373,015,972 (⬆️81%)
GGR WR: 9.58% (⬆️0.97 pts)
AGR: $248,467,275 (⬆️173.6%)
AGR WR: 3.8% (⬆️2.58)
Tax: $36,956,217 (⬆️$22,578,481)
— Chris Altruda (@AlTruda73) December 1, 2022
The state collected close to $7 million in tax receipts, lifting its total for the year to nearly $37 million. The budget amendment passed in June that restricted operators who had been conducting wagering in Virginia for more than 12 months to deduct promotional revenue has resulted in a dramatic uptick in tax revenue.
The 2022 total is $22.6 million ahead of last year’s pace and October’s amount was $5.2 million more than the same month in 2021. The $21.7 million collected in the last four months accounts for nearly 38% of the $57.3 million in overall taxes collected since launching in January 2021. The adjusted revenue has been at least 80% of gross revenue in each of the last four months after failing to reach 70% in the first 18 months of wagering.
The October year-over-year metrics showed large increases, with handle up 23.6%, gross revenue up nearly 70%, and the adjusted revenue showing a more than four-fold increase. In terms of full-year comparisons through 10 months, handle is up 62.7% to nearly $3.9 billion, while the $373 million in gross revenue is 81% more than 2021.
The Virginia Lottery does not disclose operator handle and revenue but did note seven operators finished with positive adjusted gross revenue eligible for taxation.