RICHMOND, Va. — Virginia has collected tens of millions of dollars in tax revenue since legalized sports betting debuted last year, despite a tax break for betting companies that helps reduce their obligation.
The Richmond Times-Dispatch recently reviewed Virginia Lottery numbers and found that sports betting companies have offered $168.8 million in “bonuses and promotions” to customers since launching.
That promotional money can be deducted from each company’s tax obligation. The state has taken in $26.7 million in tax revenue so far, but the promotional write-offs negated 43.7% of the revenue Virginia’s government could tax.
Only five of the 12 companies currently taking sports bets have paid any taxes since launching.