Prospective Vermont sportsbook operators take aim at authorities over regulations
DraftKings, FanDuel, and Caesars question state officials over enhanced procedures following individual operator scrutiny of new rules
Vermont’s so-called ‘enhanced procedures’ for the regulation of sports betting have drawn criticism from three prospective sportsbook operators in the state citing potential headaches for operators.
US market leader FanDuel, along with DraftKings and Caesars Sportsbook, all are understood to have submitted written questions to the Vermont Division of Liquor and Lottery (VDLL) following the publication of the draft procedures at the end of last month.
Broadly, the trio were united on the subjects of their respective questions, with FanDuel submitting a 24-page letter to state officials picking apart all aspects of the regulations.
While a lot of the queries raised were concerning individual minutiae of both the user process and its impact on the firms’ existing operations, headline requests included the removal of section 6.2 of the enhanced regulations, which allows the VDLL to set limits on promotional play.
The operators questioned the need for such action, citing its absence in other states, and questioning whether the impact of such a stipulation would reduce the attractiveness of state-licensed sportsbooks.
The other main query was the requirement to send sportsbook source code to an independent testing laboratory for example Gaming Labs International (GLI) for certification prior to approval for licensing.
The procedures state that source code shared be identical to that used by the respective operator when it is licensed, however FanDuel questioned whether this could compromise its trade secrets.
The operator instead suggested that any wagering platform which “meets or exceeds” the procedures or other technical specifications receive certification of its software.
FanDuel also took aim at a requirement for so-called ‘integration testing’, labeling this as going “overboard” and suggesting the VDLL shift the requirement back to operators to ensure that all integration works to specifications.
Other queries raised included a DraftKings motion to switch self-exclusion requirements from utilizing a Vermont-specific self-exclusion hotline to the more widely known 1-800-GAMBLER phoneline, prevalent across many US jurisdictions.
Areas relating to form population, terms and conditions requirements, and individual signup sections requiring beyond typical player authentication were also raised, with FanDuel questioning whether these regulations might inadvertently fuel black market operators targeting the state.
Under Vermont’s proposed timetable, two public hearings will take place on the enhanced procedures, with a 30-day period of comment and review before the VDLL issues a request for proposals (RFP) document to prospective operators seeking licenses.
Up to six operators could receive licenses in the Green Mountain State, with officials targeting a launch of regulated sports betting operations by the end of 2023.