Will bet365 Be Able to Benefit from the Brand-New Promotional Deduction Rule in Virginia in the Coming Months?

Despite ending its four-month streak of surpassing the $500 million handle benchmark in February, sportsbook operators in Virginia combined to bring in an average hold rate of 9.2 percent. One of the most notable items in the Virginia Lottery’s February revenue report was the $7.8 million in promotional deductions reported by the bookmakers.

There Are Some Exceptions to the Rules

The Old Dominion continues to be a prominent market for the sports betting industry. There is a rule that has an exception. The Virginia Lottery doesn’t disclose any information regarding specific numbers for every online bookmaker, but the Big 3; FanDuel, DraftKings, and BetMGM are prohibited from deducting promotional credits under the new rule.

It was taken advantage of by some of the newer mobile sportsbooks eligible to do so, including bet365, Hard Rock, Betway, and SI Sportsbook. The reason is these newer platforms that gained market access haven’t been in operation for 12 months in the jurisdiction.

The amount was more than 10 times the $768,221 reported for January. This was also the first time the figure exceeded $1 million since September in regard to these deductions.

By taking the situation in mind, bet365 used this method to its advantage. bet365 has had a tough time marketing its product in the United States but has an outstanding reputation in Europe and parts of Asia.

How Did The Market Help bet365?

bet365 is currently accepting wagers in four states which include New Jersey, Colorado, and Ohio. Promo deductions contributed to bet365’s negative adjusted gross revenue of nearly $2.7 million. Despite pushing a 33.9 percent hold on $15.6 million for its monthly handle, the sportsbook paid no state taxes despite reporting $5.3 million in gross revenue.

As of January, bet365 had a negative adjusted gross revenue of $3 million including its first full month of wagering. bet365 is doing anything it could to compete against the rest of the pack which includes rivals Betfred and others.

It will be necessary for the sportsbook operator to spend more money to bring in new customers in order for the negative numbers to decline. bet365 has maintained a top 10 handle ranking in the states where it conducts business, but faces a risky challenge in Ohio.

In the Buckeye State, the brand cannot deduct promotional credits until 2026. Still, by bringing in $69.6 million in bets for the month in Ohio, it rounded out the top five in the state.

Can bet365 Expand From Here?

bet365 has been in the sports betting business for more than two decades since it launched its website in 2000. The platform may not have market access in many states; the four markets listed above will continue to be strong markets going forward.

bet365 has perks of its own as it has early payouts. For example, in the NBA, if a team goes up by 20 points ahead at any point of the game, there will be an early payout regardless of the final result of the game. The platform also has better odds for many occasions compared to FanDuel, DraftKings, and others.