Lines are Blurry Between Traditional and Fantasy Sports Betting in Virginia
Two companies offer nearly the same services in Virginia. However, one has to pay thousands of dollars in regulatory fees. The state legalized daily fantasy sports in 2016. In 2020, it legalized sports betting. However, traditional and fantasy sports betting in Virginia operated under different industries.
Traditional sports betting has many rules because it’s seen as a game of chance. The federal government classifies fantasy sports betting as a game of skill and does not regulate it as gambling. Thus, it has its own set of laws.
Over the past four years, though, as sports betting has become increasingly popular, the boundaries between the two industries have begun to blur. According to bookie PPH experts, standard and fantasy sportsbooks offer similar proposition bets, such as predicting an NBA player’s point total or an NFL team’s touchdown total.
Traditional and Fantasy Sports Betting in Virginia
The high taxes and permitting expenses only apply to conventional sportsbooks. The first permission costs these organizations $250,000; each year after that, they pay an additional $200,000. The renewal and permission price for fantasy sports applications is merely $8,300.
Virginia Attorney General Jason Miyares stated that contest results based solely on individual performance metrics constitute sports betting, not fantasy contests. This was about the practice of fantasy bettors offering games based on stat lines based on gambling tips.
Additionally, a lawmaker from Fairfax, Virginia, has proposed a bill defining the parameters of the 2025 legislative session. Additionally, fantasy sports betting is permitted at the federal level and has no age restrictions. Both betting sites are being pushed by politicians who want to ensure that everyone must be at least 21 to participate.
Virginia Betting Revenue
June was a roller coaster for the top Virginia sportsbooks we tested. Virginia Lottery’s June revenue report states that while the sector did see reasonable year-over-year improvements in handle and revenues, there was also the usual month-over-month slowdown in seasonal sports wagering.
All indications are that the growth of the Virginia sports betting industry persisted until June of this year (2024). Tax collections have increased considerably year over year, and revenues for the first half of this year are up 25%.
In June, FanDuel maintained its position as the most popular sports betting app in Virginia, raking over $20 million in monthly revenues for an unprecedented seventh consecutive month. The familiar DraftKings came in second, with BetMGM third in handle but fourth in revenues behind bet365.
The top sportsbooks in Virginia took in $415.4 million from Virginians in June. Under $500 million has not been wagered on legal sports in the state since August, marking a first. Bettors seized numerous Virginia sportsbook promotions.
Although June’s handle is down 18% from May’s $505.6 million, it’s up 24% from last June’s almost $325.5 million, and the decline is month-over-month. There was a whopping $413 million in sports betting in Virginia in June, with the rest coming from brick-and-mortar establishments.
According to the best bookie pay per head providers, Virginia bookmakers have accepted wagers totaling $3.29 million thus far in 2024.
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