Virginia Reports $737.2M September Betting Handle, Mobile Dominates Market
The Virginia Lottery’s September sports-betting financial report shows Virginians wagered $737.2 million, an 18.5% increase year-on-year from September 2024.
LISTEN TO THIS ARTICLE:The report, covering activity from the state’s 14 licensed mobile operators and three casino sportsbooks, records players winning back $667.4 million, leaving operators with a 9.46% hold on total handle. Adjusted gross revenue (AGR) across all licensed sportsbooks reached $64.5 million for the month.
Online betting accounted for virtually the entire market. Mobile platforms drove $731.5 million of the $737.2 million handle and paid out $662.7 million in winnings. After statutory deductions, the mobile channel reported $63.6 million in AGR. Retail wagering through casinos was small by comparison: $5.6 million wagered, $4.7 million returned to bettors and $891,650 in AGR after $43,000 in deductions.
The state’s 15% AGR tax on sportsbooks produced $9.7 million in tax receipts for September. Under Virginia law, 97.5% of that levy is directed to the state’s General Fund; the report shows the General Fund received approximately $9.4 million in September. The remaining 2.5% - or $241,716 – was allocated to the Problem Gambling Treatment and Support Fund administered by the Virginia Department of Behavioral Health and Developmental Services.
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Regulators See Stable Tax Growth and Modest Treatment Funds
Market analysts point to two clear trends in the latest figures: continued migration to mobile platforms and a stable tax yield that bolsters state coffers while providing limited, dedicated funding for problem-gambling services.
"Mobile continues to be the dominant distribution channel in Virginia, and that shift is accelerating month to month", said John Mercer, an independent gaming analyst. "An 18.5% year-on-year increase in handle suggests strong consumer engagement – driven in part by an active NFL schedule in September – but the operator hold of roughly 9.5% signals a competitive market where promotional activity and lines management matter more than ever. Regulators will be watching volatility closely because AGR can swing rapidly with a few high-liability events."
Advocates for treatment and prevention welcomed the funding but urged a longer-term view.
Nearly a quarter of a million dollars flowing into the Problem Gambling Treatment and Support Fund each month can make a real difference for outreach and clinical services at the margins. However, as the market expands, the state should evaluate whether current allocation levels are sufficient to meet rising demand for treatment and prevention programs across urban and rural communities."
Virginia’s structure – where nearly all betting activity is taxed at a flat AGR rate and most revenues go to the General Fund – mirrors the approach taken by a number of U.S. jurisdictions with regulated mobile markets such as New Jersey and Pennsylvania. But unlike some states that earmark larger shares for education or problem gambling, Virginia’s 2.5% diversion to treatment remains modest.
Looking ahead, seasonal sport schedules and future regulatory guidance will be the main variables shaping monthly AGR and tax receipts. The state’s regulator will continue to publish monthly statements that provide transparency into operator performance and public revenue flows.
What Analysts Expect in the Next Reports
Key items to track in coming reports include: month-on-month shifts in mobile versus retail volumes, changes in operator promotional spend that can compress hold percentages, and any legislative activity in Richmond that could alter tax allocation. Market watchers will also be observing whether the growth trend evident in September holds through the peak sports calendar in late fall and early winter.
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