Vermont has given operators of online sports betting sites until near the end of August to bid for a chance to offer event wagering in the Green Mountain State, which is on track to launch early next year.
Documents posted to the website for Vermont's Department of Buildings and General Services show operators have until 4:00 p.m. ET on July 31 to ask questions about the state’s legal sports betting request for proposals (RFP), and then until 4:00 p.m. ET on August 28 to bid.
The RFP was issued on July 19, and will be for a three-year contract with the state plus the option for two one-year renewals. It also suggests that wagering won’t begin in Vermont until January at the earliest, which would mean bettors in the state will miss, at minimum, almost all of the NFL's regular season.
“The State anticipates the start date for such contract(s) will be January 1, 2024,” the RFP says.
Two to six, or none to one
Vermont sports betting is supposed to feature two to six online sportsbooks, at least according to the state’s wagering legislation. That said, the Department of Liquor and Lottery (DLL) can choose one operator or none at all if the bids are lacking.
“This legislation empowers the Commissioner to negotiate and contract a minimum of two but not more than six operators to operate a sportsbook in Vermont through a mobile sports wagering platform,” the RFP says. “If the competitive bidding process fails to produce a sufficient number of qualified bidders, the DLL may decline to authorize any operators or authorize a single operator to conduct a sportsbook.”
Bids are subject to the evaluation criteria approved by state regulators, such as 800 possible points for "technical" factors, including the company's experience and the strength of its product, as well as up to 200 points for revenue-related items. For instance, a bidder will receive 100 points if they propose to pay the state 51% or more of their Vermont-based revenue, 75 points for 41% to 50%, 50 points for 31% to 40%, and 25 points for 20% to 30%. Under Vermont's sports betting law, at least 20% of revenue must be shared with the state.
You got this
What’s more, bids must include information about the number of individually branded websites the operator proposes to use, a responsible gambling plan, and a player-acquisition model, among other things. The RFP also seeks operators with experience, as bidders must have a sports-betting platform in use in at least three other jurisdictions.
There is far more in the 191-page RFP document, but the gist is the state is searching for operators of mobile sports betting sites to set up shop in Vermont. And, with no real preexisting gambling infrastructure in the state (and no opportunity yet to open brick-and-mortar sportsbooks), operators are responsible for carrying most of the load.
“The successful Bidder(s) must be responsible for providing all ancillary services required to operate the Sportsbook including event creation, market creation, odds compilation and management, risk management, content management and bet settlement,” the RFP says. “The Bidder must provide relevant customer support and sales support for sports wagering, including a call center.”
