Vermont legislators sign off amended sports betting legislation

Senators in Vermont have passed an amended version of enabling sports betting legislation for signing into law, opening the door for a potential 2024 launch of sports betting in the state.

House bill 127 was greenlit by the Senate following a third reading just 24 hours earlier and will now be passed to Governor Phil Scott’s office for signing into law later this month.

The bill, filed by local district Representative Matthew Birong, has gained bipartisan support and is co-sponsored by six Democrats and three representatives from the Republican Party.

HB 127 authorizes the Vermont Department of Liquor and Lottery to launch a competitive bidding process for a minimum of two licenses but not more than six sportsbook licenses in the state.

If an insufficient number of operators express an interest, the body can authorize just one license to operate a sportsbook. These limits have been maintained following the Senate’s review of the bill.

To qualify, prospective applicants must provide estimates of their gross revenue in the state, confirm the number of websites they plan to operate in Vermont, as well as give details of all jurisdictions in which they are operating, a timetable for implementation, and their business plans.

Under the initial version of the bill, operators were required to pay an annual license fee of $275,000 to the Vermont Department of Liquor and Lottery once licensed.

Much of the licensing structure has been amended by the Senate following the bill’s transition through both chambers, with crucial differences in what the House suggested to what the Senate approved.

House officials initially pushed for sportsbooks to pay an annual licensing fee based on the number of competitors in the market, however the Senate has amended this to charging a flat fee of $550,000 payable no more than once every three years and unimpacted by the number of operators in the market.

Another prominent Senate amendment is the removal of House proposals to limit the amount spent on operator advertising following intervention from Vermont Liquor and Lottery Department commissioner Wendy Knight.

During readings of the bill in the Senate, Ms Knight confirmed the commission would implement safeguards to prevent excessive advertising by operators, including a prohibition on all operator ads during programs intended for younger audiences.

House bill 127 includes the taxation of state-licensed operators at a rate of 20% of their respective gross gambling revenue (GGR).

All proceeds received from sports betting will be paid into the state’s general fund, with a separate reserve being established in the state exclusively for responsible gambling purposes.

Under the bill, the separate fund must receive an amount equal to 2.5% but not less than $250,000 of the state’s annual sports wagering revenue received by the general fund.

The department can review and approve wager categories and must do so before operators can offer bets.

It would also be endowed with powers to create revenue-sharing agreements to be signed between operators and the state of Vermont, entitling the state to a percentage of all revenue generated for taxation purposes.

Operators must also provide their respective responsible gambling plans on an annual basis, with independent reviews of these plans taking place every five years.

Vermont is home to fewer than 700,000 people and is one of the last states in New England to legalize sports betting.

New York, Connecticut, Rhode Island, Massachusetts, and Maine have all legalized sports betting in recent years, with only Maine not currently operating a fully licensed and regulated sportsbook market.