Win rates are proving to be the secret to the success of the sports betting industry in Virginia. Looking at reports over the last few months, Virginia sportsbooks see a consistent increase in hold percentage from sportsbooks across the state. The hold percentage is very important because it is the easiest indicator that tells you how much you make in your sportsbook.
If you are running your own sportsbook, using a sportsbook pay per head software will easily help you calculate your handle, revenue, and determine your hold percentage. You need to keep track of this so that you know how your sportsbook fares. Not just to know if your sportsbook is making money, but to also compare it with similar betting markets.
According to the latest report from the Virginia Lottery, the win rate for the month of May for Virginia sportsbooks is at 11.9%. This gives us a 1.3% increase from April. The climb may not seem congruent with the decrease in handle, which we will get into later.
Virginia Sportsbooks Are Earning More
The handle for May is at $403.7 million, 5.2% lower than the previous month. But it is not cause for worry, because the handle is still 14.9% higher than that of May 2022. Monthly fluctuations are common due to conditions of the sports industry, like the sports calendar. If you want to see the growth of a betting market, looking at long term data such as year-on-year comparisons are better indicators.
Out of the handle, sportsbooks paid out almost $355.6 million in winnings, which leaves a $48.1 million gross revenue. The revenue will get deductions such as operating costs, bonuses, promotions and the like. You can learn the cost of a sports betting software to get an idea of how much it is. But for sportsbooks in Virginia, $42.5 million is the taxable revenue. This is the second-highest revenue for the year.
As always, online sportsbooks take a large chunk of the action, as online operators collect $399.96 million in wagers. The handle is 5.3% lower than the previous month, but revenue is up by around $3 million. While the handle can be lower, we can still see an increase in revenue and an increase in hold percentage. This is because while there could be less wagers placed, more players could be making losing wagers. When this happens, sportsbooks get to keep more. This is what causes the climb in the hold and the revenue for sportsbooks in the state for May.