Vermont’s governor has officially put pen to paper on a bill that will authorize online sports betting sites in the Green Mountain State.
Legislation that will enable legal sports betting via mobile apps and sites was signed by Gov. Phil Scott on Wednesday, essentially ending the monthslong legislative process to lay the groundwork for event wagering in Vermont.
The expectation among lawmakers is that the first wagers could be accepted by January of next year, although an earlier start is possible if regulators move swiftly and receive compelling bids from operators.
“I first proposed Vermont legalize sports betting several years ago and I’m happy the Legislature has come to an agreement, as well," Scott said in a statement. "We know many Vermonters already participate in the marketplace and bringing it above board provides important resources and consumer protections."
Operators, start your bidding
While Vermont is relatively tiny, the legalization of sports betting there means all New England states have authorized event wagering in some form. Soon enough, Vermonters will no longer have to travel across state lines and beyond to make a legal wager.
The bill Scott signed Wednesday, H.127, was passed by the legislature in May and will legalize sports betting in Vermont under the oversight of the state's Department of Liquor and Lottery (DLL).
According to the bill, Vermont residents must be 21 or older to wager using the state's new sites, but betting on Vermont colleges is prohibited unless they are playing in a tournament. Accounts can be funded in a variety of ways, just not with credit cards.
To decide who will accept action in Vermont, DLL would conduct a competitive bidding process to select between two to six operators of online sportsbooks to take bets in the state via computer, phone, and tablet. Still, if the process fails to produce the desired results, the department could choose just one operator, or none at all.
Chosen operators would have to share with the state at least 20% of the revenue they earn from Vermont sports betting after paying the federal handle tax. Operators would also pay a $550,000 fee upfront and not have to pay that same fee again for at least three years.
Putting the green in Green Mountain State
A recent note from the Vermont Legislative Joint Fiscal Office forecast legal sports betting will generate around $2 million in revenue for the state in its 2024 fiscal year and between $4.6 million and $10.6 million the year after.
In the first year of wagering, $250,000 of the proceeds from sports betting would set up a problem-gambling program, with another $100,000 earmarked for a self-exclusion system. The remaining revenue would flow to the state government.
“The bill establishes the Sports Wagering Enterprise Fund and the revenue generated will be collected by [the department] and deposited in the fund,” the fiscal note said. “Funds in the account will be transferred to the General Fund annual via a direct application annually, similar to the process followed for proceeds from liquor sales carried out by DLL.”
