Vermont builds on sports betting report with newly introduced bill
Legislation would allow for up to six licensed sportsbooks through a competitive bidding process
Vermont legislators have put forward a bill which will legalize and regulate online sports betting in the Green Mountain State for the first time.
House bill 127, filed by local Representative Matthew Birong, has gained bipartisan support and is co-sponsored by six Democrats and three representatives from the Republican party.
It would authorize the Vermont Department of Liquor and Lottery to launch a competitive bidding process for a minimum of two licenses but not more than six sportsbook licenses in the state.
If an insufficient number of operators express an interest, the body can authorize just one license to operate a sportsbook.
To qualify, prospective applicants must provide estimates of their gross revenue in the state, confirm the number of websites they plan to operate in Vermont, as well as give details of all jurisdictions in which they are operating, a timetable for implementation, and their business plans.
Operators would be required to pay an annual license fee of $275,000 to the Vermont Department of Liquor and Lottery once licensed.
All proceeds received from sports betting will be paid into the state’s general fund, with a separate fund being established in the state exclusively for responsible gambling purposes.
Under the bill the separate fund must receive an amount equal to 2.5% but not less than $250,000 of the state’s annual sports wagering revenue received by the general fund.
The department can review and approve wager categories and must do so before operators can offer bets.
It would also be endowed with powers to create revenue-sharing agreements to be signed by operators with Vermont, entitling the state to a percentage of all revenue generated for taxation purposes.
Operators must also provide their respective responsible gambling plans on an annual basis, with independent reviews of these plans taking place every five years.
No information on taxation of operators is provided within the bill, with the issue left to be considered further on in the legislative process.
House bill 127 is the latest in a rising tide of sports betting-related initiatives pushing the legalization of the vertical in Vermont, with a Senate-appointed committee delivering a report extolling its merits last month.
The nine-member Sports Betting Study Committee report included proposals to operate a revenue-share model within the process that entitles the state to 20% of sports betting receipts by law.
With Vermont’s neighbors New York, New Hampshire, and Massachusetts having launched sportsbooks pressure has been high on Vermont to follow suit.
It is understood that Vermont’s Governor is supportive of the legalization of the vertical as a way to boost state taxation revenue.