Smaller Sportsbooks Exit Virginia’s Record-Breaking Market

By Keith Stein,
Editor at online-gambling.com

Keith Stein Editor at online-gambling.com

As a self-starter and goal-driven, Keith took up freelance writing in 1994 and within a few years moved into a full-time journalist position in 1997 in Washington, D.C. In recent years, he has published over 100 articles that focus on gambling news, reviews, and tips and tricks to give the player a slight advantage.

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Last updated: April 8, 2024

The Commonwealth of Virginia lost another operator this week in their highly competitive sports betting market that continues to break monthly revenue numbers.

Unibet Sportsbook’s parent company Kindred Group PLC announced late in 2023 that they plan to leave the overall U.S. and Canadian gambling market. The company first appeared in the North American market in 2018 and expanded services throughout Arizona, Indiana, New Jersey, Pennsylvania, Virginia, and Canada. Unibet opened their online sportsbook in Virginia on April 28, 2021.

In February, Unibet informed its customers by email they planned to exit Virginia on April 11. Other states will see Unibet shut down in May and June.

“This decision was not made lightly,” the company said in a statement on their sportsbook. “As we have worked hard to bring the best sportsbook gaming experience to our valued players in Virginia. Please be assured that our customer support team will remain available to assist you during this time of transition.”

Who Is Left in Virginia?

Following the departure of Unibet, 15 sportsbooks remain in Virginia: Bally Bet, bet365, BetFred, BetMGM, Betr, BetRivers, Betway, Caesars, DraftKings, ESPN BET, Fanatics, FanDuel, Hard Rock Bet, and SI Sportsbook.

Based on the latest Gaming Update from the Virginia Lottery, between January 2023 and November 2023 FanDuel Sportsbook?led the state holding approximately 40% market share ahead of?DraftKings Sportsbook?with 28%. Unibet held a 0.15% share of the market.

Unibet is the third operator to bail out in Virginia following WynnBET and Golden Nugget Online Gaming (GNOG). WynnBET started pulling the plug on all their sports betting services in August 2023 and GNOG was acquired by DraftKings in August 2022.

Further Mergers or Acquisitions Expected

SI Sportsbook is clearly on shaky ground after its partner, U.K.-based company 888, terminated its partnership with the service last month.

The SI Sportsbook app was launched under a partnership between 888 and Authentic Brands Group. The partnership had granted exclusive use of the Sports Illustrated brand for the SI Sportsbook app. The service was launched in Virginia on May 9, 2022.

To date, no official word has been released on the future of SI Sportsbook after 888 terminated the partnership.

According to breaking news by Bloomberg media house, Rush Street Interactive – which operates three online gambling brands,?BetRivers, SugerHouse, and RushBet, is considering a sale to DraftKings. Neither company has confirmed the news.

It remains to be seen how future changes in Virginia’s sports betting market will affect monthly revenue numbers. However, the sports betting market is rather healthy in the state. Operators have handled over $14 billion in wagers since Virginia’s strong sports betting launch in January 2021.

Record-Breaking Handles in Virginia

The Commonwealth’s current record handle came this year in January with sportsbooks handling over $652,879,750 in wagers from bettors, up 2.20% from the previous record of $638.831.057 in December 2023. The bettors won a total of $578,542,460 in January, according to the Virginia Lottery’s monthly report on sports wagering activity.

After deducting winning bets and other authorized deductions, state law places a 15% tax on sports betting activity.

January’s record revenue provided $9,932,122.45 in taxes to the state, up 16% from the previous record in October at $8,550,196.89.