Strong Growth Signals Confidence in the State’s Expanding iGaming Market
Virginia’s sports betting industry continues to gain momentum. According to the latest report from the Virginia Lottery, the state recorded a total sports wagering handle of $595 million in May 2025, marking a 17.7% year-over-year increase. With both mobile and retail operators seeing growth, Virginia’s regulated betting market is showing robust performance and strong player engagement.
Key Highlights from May 2025 Sports Betting Report
Here’s a quick breakdown of Virginia’s sports betting performance:
- Total handle: $595 million (+17.7% YoY)
- Player winnings: $522.6 million
- Operator hold percentage: 12.2%
- Total adjusted gross revenue (AGR): $67.9 million (+25.9% YoY)
- Mobile handle: $589.9 million
- Mobile AGR: $67.4 million
- Retail handle: $5.2 million
- Retail AGR: $467,259
Mobile Sports Betting Leads the Charge
As expected, mobile sportsbooks dominated the market:
- Mobile betting accounted for over 99% of the total monthly handle.
- Operators reported nearly $589.9 million in mobile wagers, up 17.7% from May 2024.
- The resulting adjusted gross revenue from mobile betting hit $67.4 million, reflecting a 25.9% increase year-over-year.
This performance reaffirms Virginia’s position as a mobile-first betting market, driven by convenience, mobile app innovation, and in-play betting features.
Retail Sportsbooks Hold Steady
While smaller in comparison, retail sportsbooks—mainly located within casinos—also contributed to the month’s activity:
- Retail handle: $5.2 million
- Retail AGR: $467,259
Retail betting remains a niche segment, but it continues to provide value in offering in-person experiences for bettors in casino environments.
Tax Revenue and State Contributions
Virginia taxes sports betting at a 15% rate based on each operator’s AGR. In May 2025, this generated nearly $10.2 million in tax revenue, distributed as follows:
- $9.9 million allocated to the General Fund, supporting statewide services and infrastructure
- $255,000 (2.5%) directed to the Problem Gambling Treatment and Support Fund, administered by the Virginia Department of Behavioral Health and Developmental Services
In total, 13 licensed operators reported net-positive AGR in May, contributing to the state’s financial growth through responsible and regulated wagering.
Industry Update: New Partnerships Expand iLottery Offering
Did you know? On June 27, Aristocrat Interactive and Inspired Entertainment partnered with NeoPollard Interactive to launch virtual sports iLottery games with the Virginia Lottery. This move further diversifies the state’s interactive gaming portfolio and reinforces Virginia’s commitment to innovation in digital gambling.
Virginia’s Sports Betting Growth Continues
May 2025 proves that Virginia’s legal sports betting market is on a strong upward trajectory. With increasing mobile adoption, rising revenue, and new game offerings, the state is positioning itself as a leader in regulated online betting.