Virginia sports betting revenue offset by tax breaks on promotions; only five operators have paid any tax

Virginia sports betting revenue offset by tax breaks on promotions; only five operators have paid any tax

Article brief provided by Richmond Times-Dispatch
  • Michael Phillips, Richmond Times-Dispatch
May 2, 2022 10:06 PM
  • Michael Phillips, Richmond Times-Dispatch

    Virginia has collected $26.7 million in tax revenue since launching legalized sports betting last year. However, the state may be leaving nearly that much on the table.

    According to Virginia Lottery numbers reviewed by the Richmond Times-Dispatch, sports betting companies have offered $168.8 million in “bonuses and promotions” to customers since launching. Those often take the form of free bets, offered to entice customers to join a particular betting service.

    Because of the way Virginia law is structured, that promotional money is allowed to be deducted off of each company’s adjusted gross revenue before the tax rate is applied.

    As a result, of the 12 companies currently taking sports bets in the state, only five have paid any taxes since launching.