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According to PlayVirginia, gross gaming revenue in Virginia remained “relatively high” in July, decreasing 9.3percent to $20 million (2020: $22 million).
In July, the hold rate was 12.3percent, which helped to partially compensate for the low valuation. Furthermore, adjusted gross revenue fell to $12.7 million, resulting in $1.9 million in state taxes, including $46,611 for problem gambling assistance.
In addition to its GGR, Virginia’s sports betting volume fell to its lowest level since sportsbooks initially opened in July, continuing a pattern that has “affected every major market in the United States.” The seasonal drop in gambling, however, will be “short-lived as causal bettors return home from summer vacations and turn their attention to football,” according to PlayVirginia.
Eric Ramsey network analyst for PlayUSA.com, which includes PlayVirginia.com said: “July brings a relatively light sports schedule and summer vacations that typically make it the slowest month in sports betting, and Virginia is not immune from a trend that has affected every major market.
“The momentum should change quickly as football draws nearer and casual bettors return home. The next five months should bring significant growth to Virginia’s fledgling sports betting industry.”
According to figures supplied by The Virginia Lottery, bettors placed $161.9 million in wagers at Virginia sportsbooks in July, down 31.1 percent from $234.9 million in June. The rate of betting was also the slowest in history, with daily wagers plummeting from $7.8 million in June to $5.2 million in July.
PlayVirginia reflected on results across the US in the same period of 2018 and 2019, which echoed comparable results, adding that a decline was “hardly a surprise,” citing the 2020 pandemic data as “skewed.”
Dann Stupp, PlayVirginia.com’s lead analyst said: “The NBA Finals and the Olympics, which featured a stark time difference, didn’t particularly move the needle.
“The Olympics should do modestly better in August, when high-profile team sports like basketball reached the medal rounds.
“But in the end, there just isn’t enough to attract widespread betting, which makes a relatively large win key in helping sportsbooks weather the seasonal slowdown.”
Despite a poor July, Virginia’s sports betting sector is still doing well. Since January, Virginia sportsbooks have taken in $1.5 billion in wagers, generating $127 million in gross gaming revenue.
“Virginia’s sportsbooks remain in an excellent place, and new operators are a good sign that the market is healthy and attractive,” Stupp added. “Increasing competition should help engage new customers and force the largest operators in the state, including FanDuel and DraftKings, to continue to vie for attention. The most important months of the year are still ahead, and competition will help spur the entire market.”