Vermont sports betting bill lands on governor’s desk
Green Mountain State to become 38th regulated market as House signs off on amended bill
Vermont is set to become the 38th regulated sports betting market in the US following the transition of enabling legislation to the desk of state Governor Phil Scott.
The passage follows a final sign off of H127 by the Vermont House of Representatives, capping off a three-month legislative journey for the now slightly amended legislation.
H127 authorizes the Vermont Department of Liquor and Lottery to launch a competitive bidding process for a minimum of two licenses but no 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. However, it is expected between two and three operators will look to launch in Vermont based on the likelihood of the state signing revenue sharing agreements with those respective firms.
In order to qualify for a license, prospective applicants must provide estimates of their gross revenue in the state, advertising models, marketing budget, and responsible gambling plans, as well as give details of all jurisdictions in which they are otherwise operating, a timetable for implementation, and their business plans.
Prospective operators would pay an annual $550,000 license fee for at least the next three years and a 20% minimum revenue-sharing rate. The legislation sets out a minimum age of 21 for all betting and allows betting on college sports.
In addition, H127 provides for a review of potential daily fantasy sports (DFS) legalization by the state in the future.
Under the regulatory timeline, the Green Mountain State could launch sports betting as early as January 2024.
Vermont’s trajectory towards legalized sports betting began in September 2022 with the commissioning of a review of potential regulatory approaches by a nine-member Sports Betting Study Committee, which looked at the impact of sports betting on the state from a socioeconomic standpoint.
A key part of the process was a 12-page paper, entitled “Creating the Sports Wagering Regulatory Framework”, prepared by Vermont Legislative Council legislative counsel Tucker Anderson, which included key decision issues and flow charts for a potential sportsbook legalization.
Options included extending the prohibition on sports betting, a state-controlled sportsbook market, and the licensing of operators in a traditionally regulated market model.
According to state estimates, Vermont could make as much as $2m in sports betting taxes in its debut year, rising to between $4.6m and $10.6m in 2025 and approximately $10m for every subsequent year of operation.
Responsible gambling programs in the state could be in line to receive $250,000 in 2024, rising to $550,000 for each subsequent year thereafter.