Vermont

On January 11, 2024, Vermont joined the growing list of states with legalized sports betting. It may have taken a while to get sports betting off the ground, but now residents are being rewarded for their patience with three mobile sports betting apps available for download.

Since sports betting is still fresh on the market in Vermont, it is important to know what can and cannot be wagered on. Betting on collegiate sports is available, but wagering on in-state colleges is not allowed unless one of those schools is playing in a tournament, so unless the Vermont Catamounts make the NCAA Tournament, they cannot be wagered on. Aside from college sports, betting on eSports is also fully legal in the Green Mountain State.

While online sports wagering was not legal until January 2024, residents in VT have been able to use daily fantasy sports apps for quite some time, as they were made legal in the state in 2017. Vermont bettors can also download and use racebooks to wager on horse races.

Online sports betting in The Green Mountain State

The pursuit of legal sports betting in Vermont started in 2019 with the introduction of H 484, but like most first sports betting bill proposals, it did not make it far in the legislative process before dying. Vermont lawmakers doubled their efforts in 2020 by introducing two sports betting bills, and while S 59 was the first bill to make it passed the Senate, it would also end up dying.

Once again, in 2021, Vermont got closer to legal sports wagering with SB 77, which featured many of the same guidelines as the state's current sports betting bill, HB 127. Rep. Matthew Birong proposed that bill in 2023. By June 2023, the House and Senate passed this online-only sports betting bill, which was signed into law by Gov. Phil Scott.

They may have been fashionably late, but Vermont finally arrived at the legal sports betting party. HB 127 allows the state to issue six sports betting licenses to mobile operators, and three have been issued as of now.

DraftKings, FanDuel, and the Fanatics Sportsbook were the three operators cleared to launch on January 11, 2024. Two other operators, BetMGM and ESPN Bet, applied for licenses at the same time, but the Vermont Department of Liquor and Lottery did not approve them.

Plenty of states with legal sports betting require mobile operators to partner with in-state casinos, but that is not the case in Vermont. Retail betting remains illegal in Vermont because there are no casinos.

Expansion is likely to occur, but with two operators already being denied licenses, it’s clear the state is very selective about who it allows to join the market. Still, three licenses are available, so operators will continue to pursue operating in the state.

All legal VT sports betting apps in 2024:

Sports betting & gambling legislation in VT

In order for bettors to place a legal sports wager in Vermont, they must be at least 21 years old. This is an important rule for VT residents since, technically, the legal gambling age in the state is 18, but that clearly does not apply to online sports betting. Since retail wagering is not available in Vermont, remote registration is fully legal in the state for all bettors who are at least 21.

Not only does the Vermont Department of Liquor and Lottery enforce these rules and regulations, but it also has the critical task of handing out operator licenses. Much like the gambling age, the tax rate on gambling winnings also requires some added attention. For residents of VT, the tax rate on winnings is set at 6%, but for non-residents of VT, the tax rate is set at 7.25% on all winnings made in the state.

Further discussions about anything gambling-related are currently not on the table. This would include the legalization of iGaming or online poker. Without those two markets or retail casinos, the gambling market outside of sports betting consists of the lottery, DFS apps, and horse race betting.

Most recent updates from the VT sports betting scene

• December 13, 2023: Vermont confirms that sports betting will officially launch on January 11, 2024, allowing it to capture the Super Bowl and March Madness betting excitement. The state has granted mobile sports betting licenses to DraftKings, FanDuel, and Fanatics Sportsbook, marking the end of a long-debated topic.

• June 15, 2023: Vermont has officially legalized online sports betting, with approval from the legislature and Governor Phil Scott. The Vermont Department of Liquor and Lottery will oversee sports wagering, issuing licenses to two to six eligible operators.

• May 5, 2023: An amended version of Vermont's sports betting bill, H127, passes the State Senate on its third reading. The bill will now return to the House for confirmation.

• March 27, 2023: Vermont House Bill 127, introduced by Rep. Matt Birong, aims to legalize online sports betting. The bill has passed in the House with solid support and will now be moved to the Senate for further consideration. If approved by the Senate, it will be sent to the Vermont Governor to become law.

In-person sports betting sites and locations

While Vermont may have finally gotten over the hump of launching sports betting, that launch does not include retail wagering. Retail sports betting is still illegal, as there are no casinos in the state to begin with.

Not only does The Green Mountain State not have any casinos to launch retail sports betting in, but the state also doesn’t have any horserace tracks even though betting on horse races is entirely legal.

Sports betting in neighboring states

Vermont was one of the few northeastern states remaining without legalized sports betting. Until the official launch of mobile betting in January 2024, Vermont residents could travel over the state’s borders to New York and Massachusetts to find pervasive betting markets.

Not only do New York and Massachusetts offer legal sports wagering, but New Hampshire does as well. To read more about all three states’ betting infrastructure, click on their names below.

Sports betting revenue impact on Vermont's economy

Vermont’s sports betting bill allows for a maximum of six mobile operators to join the market. Of the three sportsbooks that already obtained a license to operate, they all paid a licensing fee of $500,000. These operators were also required to pay an additional annual fee that is set to decrease as more licenses are acquired. The tax rate for these operators is 20%, which is considerably high compared to all other states with legal sports betting.

Within its initial 20 days, Vermont's sports betting saw a substantial handle exceeding $19.9 million. Tourism contributed $7.1 million, comprising 36% of the total volume. The trio of licensed VT sports betting platforms - FanDuel, DraftKings, and Fanatics - collectively generated $3.6 million in revenue for January. These operators also paid Vermont $1.1 million in monthly sports betting taxes.

Despite being a small state, early tax revenue estimates from sports gambling, initially projected at $1 million, may be conservative. Due to the robust response to online sports betting, Vermont has adjusted its revenue forecasts, anticipating between $8 and $10 million in the first six months of operation.

Vermont sports betting record months:

• Sports betting handle: February 2024 ($21,249,830)

• Revenue: January 2024 ($4,211,298)

• Tax income: January 2024 ($2,293,406)

VT sports betting revenue in 2024