Both FanDuel and DraftKings had record-setting Virginia sports betting handles in October, leading to substantial contributions to the Old Dominion’s all-time monthly high of $64 million in gross revenue.

A fulfilled Virginia Freedom of Information Act from the Virginia Lottery showed the two sports betting apps combined to accept $409.5 million of the state’s $571 million handle in October. Both had double-digit holds as they claimed a combined $49.6 million in gross revenue. DraftKings’ $19.2 million was its all-time high in the state, while FanDuel’s $30.4 million trailed only the $32.5 million the sportsbook won in November 2022.

October also marked the debut of SuperBook in Virginia, while WynnBET officially closed up shop. SuperBook was the second new entrant in as many months in the Old Dominion as Betr launched its mobile sportsbook in September, and Fanatics extended the streak in November with its entrance.

Virginia became the 10th state to surpass $12 billion in all-time sports betting handle with October’s figures, with operators accepting $4.3 billion worth of wagers in the first 10 months of 2023. Sports wagering has generated $58.4 million in state taxes this year, up $21.4 million compared to the same period in 2022.

FanDuel, DraftKings roll on

FanDuel’s $240.7 million handle bettered its previous high of $226.1 million established in November 2022, and it was the sixth time the operator topped $200 million. It crafted a hold of 12.6%, the 16th consecutive month it was 11% or better. FanDuel has a win rate just shy of 12.5% for 2023, meaning it has claimed nearly $1 of every $8 wagered from handle totaling $1.74 billion.

DraftKings, meanwhile, set company highs in handle and revenue in Virginia in October by bettering September’s totals. The $168.8 million in accepted wagers for October was $3.7 million more than the previous month, while revenue was $2.4 million higher at $19.2 million. Its 11.4% hold was its second-highest this year behind the 11.6% fashioned in May. DraftKings has already exceeded its 2022 full-year totals in both categories, with the $115.7 million in revenue from $1.22 billion handle translating to a 9.5% win rate.

BetMGM was a comfortable third in both handle and revenue, posting a 10%-plus hold for the third time in four months and fifth time in 2023 as it claimed $6.8 million in winnings from $65.7 million wagered. Though BetMGM surpassed $500 million in handle for 2023 with October’s numbers, its $546.9 million in bets placed is 24.8% lower compared to the first 10 months of 2022. Gross revenue has tailed off 29.3% as BetMGM’s 9.8% hold this year is nearly two-thirds of a percentage point lower than 2022.

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Heavy promo spend for bet365

There were four mobile operators eligible to deduct promotional play and bonus offers in October — bet365, Betfred, Betr, and SuperBook — but the overwhelming majority of the $2.8 million spend came from bet365. It offered $2.7 million worth of credits and bonuses, down from September’s $3.6 million, while still lifting its overall spend in the Old Dominion to $23.8 million. The $6.3 million outlay in September and October is more than four times the $1.4 million given out in July and August combined.

Bet365 has performed well since launching at the start of the year — it has a 14.6% overall hold in claiming $26.3 million in gross revenue from $179.6 million worth of bets, but other deductions beyond promotional offers, including voided bets and the federal excise tax, have resulted in negative adjusted gross revenue. Bet365 finished with minus-$870,840 in AGR for October, sending the total to nearly minus-$1.7 million the last two months of reporting.

After bet365 whittled a total of minus-$5 million AGR through the spring and summer down to minus-$2.8 million heading into September, it has since ballooned to minus-$4.5 million. The sportsbook only has two months remaining of promotional deductions available before it will have to apply its full AGR to the carryover losses it will likely have come the start of 2024.

Despite a smaller promotional spend of $72,000 in October, Betfred had a negative AGR for the third consecutive month, finishing at minus-$32,965. It will be hard-pressed to zero out its overall AGR of minus-$321,756 by year’s end — Betfred has not grossed more than $128,000 in any month and has a modest 4.2% hold on $10.7 million handle this year.

Virginia marked SuperBook’s ninth state of operations, as the mobile sportsbook began taking wagers Oct. 19. The first 12 days of action saw $101,000 handle and a 26.5% hold to keep $27,000. It finished with a positive AGR of $15,000 in October and paid $2,300 in taxes.

Betr’s first full month of wagering saw a sharp decline in handle, 66% lower to $85,000. Still finding its footing in traditional sports betting after entering the scene as a microbetting platform, Betr’s promo spend in October was down roughly one-third to $17,000, and a 2.1% hold on gross revenue contributed to a negative AGR of minus-$16,245, increasing its overall deficit to minus-$21,703.

Betr likely will see an uptick in action in December when co-founder Jake Paul gets back into the boxing ring to face Andre August on Dec. 15. Paul, who is 7-1 with four knockouts, has primarily fought former UFC fighters, but August is a cruiserweight boxer. Paul’s lone loss came this year in a split decision to boxer Tommy Fury, the half-brother of current heavyweight champion Tyson Fury.

Retail books continue to clean up

Virginia’s three brick-and-mortar sportsbooks in Danville (Caesars), Bristol (Hard Rock Bet), and Portsmouth (BetRivers) combined to generate $862,800 in gross revenue from $5.8 million worth of wagers, good for a 14.9% hold. It was the fourth straight month the retail operators had a double-digit hold as total gross revenue for the year cleared $5 million.

Caesars has accounted for approximately 30% of that amount thanks to an eye-watering 21.5% win rate since entering the marketplace in May. It had more than $1.6 million handle for the second consecutive month, but October’s more modest 14.7% hold knocked revenue down 42.8% to $241,000.



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