Vermont Will Become Next State to Legalize Online Sports Betting

• The House of Representatives approved a Senate-amended online sports betting bill 
• The bill heads to Gov. Phil Scott (R) to be signed into law
• Scott has indicated he will sign the bill into law

Vermont will most likely become the 38th state to legalize sports betting after the House of Representatives approved an amended online sports betting bill this morning.

The bill, H.127, will be sent to Gov. Phil Scott (R) to be signed into law. Vermont will become only the second state, behind Tennessee, to legalize only online sports betting with no brick-and-mortar elements.

Scott has indicated he will sign the Vermont online sports betting bill. If signed this month, online sports betting will be set to launch in the Green Mountain state in  2024.

Online Sports Betting by January 2024

The House of Representatives put the final touches on Vermont’s online sports betting plans by approving the amended bill this morning by a voice vote. The Vermont Senate approved the bill on second and third reading earlier this week, but with several amendments.

One notable amendment is a change to the approved operator licensing fee. If an operator is chosen by the Department of Liquor and Lottery  (DLL), the contract will be for a minimum of three years at a cost of $550,000 for a license.

So, for example, if an operator agrees to a five-year contract, it will have to pay $110,000 annually for each of the five years.

During Senate discussions two weeks ago, Sen. Alison Clarkson (D) revealed online sports betting would likely launch in the Green Mountain state by January 2024.

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.

Two to six online sports betting companies will be allowed to operate in the state.

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 Department of Liquor and Lottery (DLL).

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.

College Sports Betting Prohibitions

The bill allows for betting on college sports, but does place a prohibition on bets placed on in-state colleges and universities. Many states offer this prohibition, including neighboring Massachusetts and New York.

However, the DLL will allow bets on Vermont colleges or universities if the school is participating in a tournament, such as the annual March Madness tournament, even if the tournament is taking place in the state.

The minimum age to participate in sports betting in Vermont will be 21.

Gov. Phil Scott Likely to Sign Into Law

Gov. Scott has expressed his desire to legalize Vermont sports betting for the past several years.

Jason Maulucci, Press Secretary for Gov. Scott, recently told Sports Betting Dime today that Scott hopes to finally bring Vermont sports betting “above board” and provide consumers the protections they need through a regulated market.

“The governor continues to believe that Vermont should join the vast majority of states and legalize sports betting. We know that Vermonters are already participating in the market, and without bringing it above board, there is very little consumer protection in place. The governor has proposed legalization for more than three years, and is grateful it appears the legislature will finally act this year,” Maulucci said.

He’ll likely sign the bill into law later this month.