Sports betting sites are one step closer to launching in Vermont after pro-wagering legislation passed another Senate committee.
The Vermont Senate’s finance committee met again on Tuesday and approved an amended version of House Bill 127, legislation that would bring legal sports betting to the state via mobile apps and sites.
While Vermont is the only New England state that has not legalized sports betting, H.127 would change that and put the state's Department of Liquor and Lottery in charge of event wagering once Vermont sports betting is legalized. The department would conduct a competitive bidding process to select two to six operators of mobile sportsbooks to take wagers in the state, although it could select one or no operators if there are not enough worthy candidates.
Bookmakers would have to turn over a share of the revenue from sports betting to Vermont, and the bill requires that cut to be no less than 20% of adjusted receipts. Operators will also have to fork over an annual fee.
Fee-faraw
The Senate finance committee had been tinkering with the idea of tweaking that fee structure. When H.127 arrived in committee, the legislation proposed that a single operator would have to pay $550,000 a year, while two operators would prompt payments of $412,500, three would require $366,666, four $343,750, five $330,000, and six $320,833.
Senators then spent time last week considering other fee structures before settling Tuesday on an upfront payment of $550,000, which would cover the cost of regulating the industry.
It will be up to the Department of Liquor and Lottery to negotiate with an operator over the length of their contract and when they would have to pay the $550,000 again. Nevertheless, the amendment approved Tuesday says bookmakers will not be charged more than once in any three-year period.
Tracking changes
Other changes approved by the finance committee on Tuesday include tweaking the name of a "Sports Wagering Fund," where the fees and revenue from sports betting will be deposited, to the "Sports Wagering Enterprise Fund."
Another change the finance committee made was to ensure proceeds of sports betting done within the state can be taxed, similar to what’s done with lottery winnings.
If H.127 remains amended, it must go back to Vermont's House of Representatives when the Senate is finished, as the former chamber has already passed the bill and would need to agree to the changes. That said, Tuesday’s vote nudges the legal sports betting bill closer to the finish line.
