Vermont Online Sports Betting Bill Passes Out of Senate, Launch Targeted for 2024

• Vermont Senate approved an online sports betting bill on third reading this morning
• The bill now heads back to the House of Representatives for concurrence
• If approved by the House, the legislation will be sent to Gov. Phil Scott (R) for his signature

A bill to legalize Vermont online sports betting seems to be within sight, with a launch target of January 2024 looking to be a realistic starting point.

The Vermont Senate approved H.127 on third reading this morning. The amended online sports betting bill has been successfully passed out of the Senate and will be sent back to the House of Representatives for concurrence. A vote is expected in the House next week.

If approved by the House, the bill will be sent to Gov. Phil Scott (R) for his signature. He has indicated he is eager to legalize sports betting in Vermont.

Vermont Sports Betting Likely for 2024

The Senate approved the amended bill by a voice vote this morning. 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.

Yesterday, the senate heard the bill on second reading and 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.

The House of Representatives will have to concur with the Senate-approved version of the bill. Several amendments were discussed during the legislation’s 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 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.

Gov. Phil Scott Eager to Legalize Sports Betting

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 get his chance later this month.