Vermont Inching Ever Closer to Final Sports Betting Vote

• The Vermont Senate this afternoon approved an online sports betting bill for a third reading
• Vermont is inching closer to the approval of its online sports betting bill
• Gov. Phil Scott (R) has indicated he will sign the online sports betting bill into law

A Vermont online sports betting bill has been approved for a third reading by the Senate this afternoon and inches closer to legalizing sports betting in the Green Mountain State.

The Vermont Senate approved the online sports betting bill on second reading by a voice vote this afternoon, though it did come with several amendments. The bill now heads for a third reading on the Senate floor.

Gov. Phil Scott (R) has indicated he is eager to legalize sports betting in Vermont.

Vermont Plans to Launch in 2024

A third reading of the bill in the Senate could come as early as tomorrow. The amended bill would then be sent back to the House of Representatives for the chamber’s approval as well.

Sen. Alison Clarkson (D) presented the bill to the Senate floor this afternoon with several approved amendments. If signed into law by Gov. Scott this month, Clarkson said it will jump start a months long journey in order to launch online sports betting by January 2024.

“This is as strong of a bill that exists now in the country,” Clarkson said.

Here is the proposed timeline for Vermont sports betting:

• Department of Liquor and Lottery (DLL) creates rules and regulations for sports betting in May and June.
• An RFP is published and posted for online sports betting license applications in July.
• Online sports betting operators submit bids in August.
• DLL evaluates and selects applications for online sports betting licenses in August and September.
• Contracts are awarded in October and December.
• Online sports betting launches in January 2024.

Rep. Matthew Birong’s (D-3) Vermont online sports betting bill was introduced in January about two months after a study committee recommended Vermont legalize sports betting in the 2023 legislative session. The bill was approved by a voice vote in the House of Representatives in late March.

The state’s DLL will regulate sports betting and award licenses. Interested operators will have to go through a “competitive bidding process” to receive a license. Much like New York’s competitive bidding process, operators will have to submit bid packages to the department that include a proposed online sports betting tax rate they would be willing to pay to operate in the state.

The minimum allowable tax, or revenue share as its noted in the bill, is 20% in the state.

Other mandated information in a bid package is an estimate of the applicant’s potential gross sports wagering revenue, the number of individually-branded websites the operator proposes for sports betting operations, a responsible gaming plan, and a plan for maximizing sustainable, long-term revenue for the state through a detailed market analysis.

Collegiate sports betting will be allowed in the bill, unless it includes an event in which a participant is a college team or institution that is located in Vermont.

Operator License Fees Amended

Several amendments to the bill were included in the second reading, including a change to the proposed online sports betting license fees.

The amendment included the following fee structure:

• Two total operators: $412,500 per license
• Three total operators: $366,666 per license
• Four total operators: $343,750 per license
• Five total operators: $330,000 per license
• Six total operators: $320,833

Additionally, several amendments seek to limit underage exposure to sports betting advertisements. A provision that prohibits the use of sports betting advertisements on products that are sold primarily for person under 21 years of age was approved, as well as a requirement for all sports betting operators to include an advertising plan in their submitted license application to the DLL.

Financial Estimates for Vermont Sports Betting

The Vermont Legislative Joint Fiscal Office published fiscal estimates for legalized online sports betting. The department estimates Vermont could see approximately $1.3 million to $2 million in revenue for FY 2024 and between $4.6 million and $10.6 million in revenue for FY 2025.

If negotiated revenue shares are 20%, the JFO estimates sports wagering revenue at $1.31 million in FY 2024 and $4.58 million in FY 2025. Assuming a 50% revenue share, the department estimates the state will receive $2 million in sports betting revenue for FY 2024 and $10.64 million in FY 2025.