Vermont Governor signs off on sports betting legalisation

Vermont has become the 39^th US state to legalize sports betting with Governor Phil Scott signing enabling legislation into law yesterday afternoon (June 14).

Scott was the second state governor to do so following the lead of North Carolina Governor Roy Cooper, who signed legislation into law in the Tar Heel State the same day.

Issuing a statement on the signing of H127 into law, Scott hailed the agreement of legislators in both House and Senate, as well as the potential benefits to the Green Mountain State.

“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.

“We know many Vermonters already participate in the marketplace and bringing it above board provides important resources and consumer protections.

“Vermont now joins many other states who have made this move, and I want to thank Commissioner Knight and her team, as well as members of the legislature for their collaborative approach on this issue,” he added.

H127 authorizes the Vermont Department of Liquor and Lottery (VDLL) 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.

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.

Operators would be required to pay an annual license fee of $275,000 to the VDLL once licensed.

Vermont licensed operators will be taxed at a rate of 20% of their respective gross gambling revenue (GGR), with initial estimates suggesting the state could generate $10m in annual tax revenue by 2026.

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

Under the licensing framework laid out in H127, the VDLL will begin the request for tender process in July, inviting interested parties to bid for sportsbook licenses, before evaluating prospective bids and selecting preferred partners in September.

Over the following three months, the VDLL will undertake a program of negotiation with these entities, signing contracts with them, before the state officially launches in January 2024.

Vermont has been on a trajectory towards legalized sports betting over the last 10 months, beginning with the move to conduct a review of approaches and benefits of legalization in September 2022.

Since then active debates have taken place in both House and Senate, discussions which have led to the passage of H127 into law.

The state’s entry into the sports betting arena would make it the final state in New England to legalize following Massachusetts debut as an online sportsbook in March 2023.