- The Virginia Lottery received 25 applications from various sportsbook operators to open up businesses in the Commonwealth but can only give out 12 licenses by law.
- The legal sports betting market in Virginia is expected to launch in 2021.
- Sports wagering in the Old Dominion is projected to bring in upwards of $55 million in annual revenue for the economy.
RICHMOND, Va. – The little over two-week window that was allotted for companies to apply to operate sportsbooks in Virginia this past October resulted in a total of 25 applications with only 12 licenses to go around.
The Commonwealth legalized sports betting earlier this year, and in their quest to get a handle on the different sources of the handle that would be coming in from the industry, they capped the number of operators that would be legally allowed to do business in the Old Dominion.
The job of the Virginia Lottery, the regulator of the entire sports wagering market, begins now as they will meticulously go through each application to begin approving businesses for licensure.
What Happens Now With The Virginia Lottery?
While there is a 12-operation cap in Virginia, this does not include professional sports organizations and any sportsbook that would run within their venues. It does, however, include sports betting companies that are tied to land-based casino locations in the approved cities from the November 3 vote.
A minimum of four businesses must receive approvals for the launch of a sports betting market in Virginia to occur as is stated in the law.
“The high level of interest by national and international sports betting operators validates Virginia’s efforts to strike an appropriate and responsible balance in its regulatory program for legalized sports betting,” said Kevin Hall, the Virginia Lottery Executive Director. “We are confident that the deliberative review process we are undergoing now will result in a successful program that protects consumers, athletes, and taxpayers.”
Names of the sports wagering brands that have thrown their hats in the ring for the new Virginia sports betting market were not disclosed by the lottery.
It was said that there are both American and international providers seeking to branch out into the new sports betting industry of the Commonwealth. Applications will be looked over with a fine-toothed comb since less than half of the candidates will receive a license.
What it all comes down to, no matter where the companies are headquartered, is what they can do for Virginia.
The history of a business’s success will be factored into the overall decision making for which will become licensed. This will encompass how much money a company has been able to make in other US markets, how well they’ve partnered with multiple investors, and how many jobs they brought with them when they opened in a new state.
Virginia isn’t only looking for revenue from sports bets to help the economy but job growth and opportunity that sports wagering firms could bring with them.
The Virginia Sports Betting Industry After Application Reviews
Although no names have been made public, DraftKings, FanDuel, and Penn National Gaming (Barstool Sports) have all been thrown around as possible sportsbooks that Virginians will see.
The process for awarding licenses should be finished by the beginning of 2021, allowing for businesses to launch their platforms as soon as they’re ready after that.
Virginia estimates revenue from sports wagering to go as high as $55 million annually.
Sports bettors in the Commonwealth can expect to see local mobile sportsbooks and retail sportsbooks debut sometime in 2021.
Christina has been writing for as long as she can remember and does dedicated research on the newly regulated sports betting market. She comes from a family of sports lovers that engage in friendly bets from time to time. During the winter months, you can find Christina baking cookies and beating the entire staff at Mario Kart…the N64 version of course.