Vermont targeting end of 2023 for online sports betting debut

Officials in Vermont will look to launch the state’s first regulated sports betting market by the end of 2023, following the legalization of the vertical earlier this month.

Governor Phil Scott signed enabling legislation into law on June 16, with the Vermont Department of Liquor and Lottery (DLL) already having published a 57-page ‘enhanced’ procedural document covering proposed regulations for the new market.

The document covers subjects including technical requirements, audit and internal control standards, account standards, advertising and marketing standards, as well as responsible gambling. The procedures are currently subject to public consultation, with the process due to end on July 14.

It is understood the DLL is targeting three priorities: educating players on responsible gambling, protecting players, while also encouraging healthy competition among operators.

In comments reported by the SportsHandle news website, DLL commissioner Wendy Knight confirmed the division’s overall modus operandi when looking at regulations.

The plan is to have wagering live in Vermont by the end of this year.

“It’s been the intention all along to have competition. The sports betting committee recommended that, the Governor talked about that, and the legislature wants that,” Knight said.

“That’s the intent. The legislature was really clear, that maximizing revenue is not the top priority…It’s consumer protections and moving off the illicit market. So, there are really three top priorities, and maximizing revenue doesn’t top any of them,” the commissioner added.

The DLL is currently in the process of finalizing its request for proposals (RFP) process, which will be used by operators applying for licenses to operate sportsbooks in the state, and last week signed off on its evaluation criteria.

The criteria, as well as the finalized enhanced procedural document, are the two main lynchpins of the RFP process, which will see as many as six operators awarded licenses.

The tendering process, which is due to begin next month, will be followed by a period of evaluation by the DLL before the agency selects its preferred partners in September.

Over the following three months, the Vermont DLL will undertake a program of negotiation with these entities, including signing contracts with them, before the state officially launches in January 2024.

Operators would be required to pay an annual license fee of $275,000 to the DLL once licensed.

Vermont-licensed operators will be taxed at a rate of 20% of their respective gross gambling revenue (GGR), with initial estimates suggesting the state could generate $10m in annual tax revenue by 2026.

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.

Addressing the state’s late entry into the US sports betting market, Knight suggested the delay is ultimately of benefit to the state, allowing it to learn from other states’ mistakes in respect of legalization.

The commissioner also paid tribute to the engagement with the DLL from legislators from all sides of the chamber when crafting the enabling bill, with priorities including consumer protection and speed of launch placed front and center.

“I think the message I got loud and clear is to make sure you put the intent and framework into statute and you have as much flexibility in regulation as possible,” Knight said.

“I think we benefited immensely by having such tri-partisan support for this,” she concluded.