With a target launch in January, there are five applicants vying for Vermont sports betting licenses.
Five sportsbooks submitted applications last week for VT sports betting agreements, according to a Vermont Department of Liquor and Lottery document. The state will enter revenue-sharing partnerships with between two and six online operators.
Gov. Phil Scott signed online sports betting legislation earlier this year. The application period opened in July.
Who applied for Vermont sports betting?
Most major US sportsbooks applied for access to Vermont. Operators looking to enter Vermont:
- BetMGM
- DraftKings
- Fanatics
- FanDuel
- Penn Sports Interactive (ESPN Bet)
The most notable absence on the list is Caesars.
How spots will be awarded
Vermont regulators will grade the applications on 1,000-point evaluation criteria. The applications are not yet public.
There are 800 points available for technical criteria, while 200 points are subject to revenue criteria.
An operator must be live in at least three US markets. It also needs to sign a three-year contract with Vermont regulators, with an annual license fee of $550,000.
What is important in Vermont application?
The state opted to create a revenue-sharing structure for the market.
The operators must offer a sports betting revenue tax rate of at least 20%. A rate of 51%, as seen in New York, would receive the full 100 points allowed in the section.
The DLL wants to finalize contracts by December to meet the January start goal.
How much money will Vermont sports betting make?
The Vermont Joint Fiscal Office projected approximately $2 million in sports betting taxes in 2024.
That projected tax revenue will grow to at least $10 million annually by 2026.
Vermont will dedicate $250,000 to problem gambling programs in the first year and $550,000 each year after. Regulators also required responsible gambling plans as part of applications.
Filling out New England
Vermont is the final state in the Northeast to legalize sports betting. Both the Green Mountain State and Maine will launch around the start of the new year.
Maine will see a market dominated mainly by Caesars, while New Hampshire is a DraftKings-partnered lottery monopoly.
To the south, Massachusetts is a vibrant market, with DraftKings and FanDuel leading the way with combined 80% market share.
