Vermont opens gates on score-based sportsbook licensing process
125-page request for proposals targets operators with no Russian links as well as businesses promoting clean energy
The Vermont Department of Liquor and Lottery (VDLL) has issued a 125-page request for proposals (RFP), effectively firing the starting gun in the race for sports betting licenses in the state.
Under approved sports betting legislation, which was signed into law in June, the VDLL can award between two and six licenses to operators who respond to the request.
Applicants will be scored on a range of evaluation criteria focusing on technical- and revenue-related standards up to a maximum of 1,000 points.
In a nod to the need to recruit experienced operators, the criteria are heavily weighted towards the more technical criteria (accounting for 800 points) compared to the revenue criteria, in which operators which can only score a maximum of 200 points.
Significant point-scoring technical criteria include design and implementation of product, strength of software and services provided, as well as company experience and the operator’s approach to responsible gambling.
With regard to revenue, points are up for grabs for estimated potential gross and adjusted sports betting revenue and rationale.
The second part of the revenue criteria includes a tiered scoring system for how much of an operator’s prospective adjusted revenue will be shared with the state, with a higher percentage scoring operators more points.
Scoring ranges from 25 points for revenue sharing of 20%-30%, up to a maximum of 100 points for a share of 51% or higher, which would be one of the highest revenue requested by a US state, identical in nature to Rhode Island and New York, which both tax operators at a rate of 51%.
Contracts will be three years in length, with eligible operators required to be “full service providers” already licensed in at least three jurisdictions in the US.
Preference will be given to companies based in the state that utilize products manufactured in the state, and those who can “demonstrate” business practices which promote green energy and target climate change.
In addition, an operator’s approach to diversity and inclusion within its respective organization will also be evaluated by the VDLL.
The request for proposals also includes a section labeled “Solidarity with the Ukrainian People”, with prospective licensees required to confirm that nothing included in the proposal is “Russian-sourced” or produced by entities incorporated in the Russian Federation.
Any applicant with questions regarding the RFP must contact the VDLL by July 31, with the process closing on August 28. The VDLL will only accept applications via email and will confirm all bids received when the deadline expires.