Vermont to Launch Mobile Sports Betting in January 2024

The Vermont Legislature passed Act 63 in June 2023, becoming the last state in the Northeast to legalize sports betting. Now, after several months of reviewing sportsbook operators, setting up responsible gambling solutions, and finalizing the details, January 11th, 2024, has officially been announced as the launch date.

The DraftKings and FanDuel mobile betting apps were made available in Vermont beginning on December 13th. This gave residents an opportunity to set up their accounts, learn about how the apps work, check out promo offers, so they’ll be prepared to make real money bets come January 11.

Governor Phil Scott has been a long-time proponent of legal sports betting and he’s excited to see it finally coming to fruition. “I first proposed legalizing sports wagering in 2019 and the legislature finally agreed this year and I signed it into law. We know many Vermonters already have been involved in sports betting for quite a few years. We also know every one of our neighboring states has already legalized. By legalizing it and bringing it above board not only does it allow the state to gain revenue but it also allows us to put consumer protections in place and support addiction prevention initiatives.”

The law states that there can be up to 6 US sportsbooks in Vermont. However, so far only DraftKings sportsbook, Fanatics sportsbook, and FanDuel sportsbook had their application accepted by the State Department of Liquor and Lottery commission. Both DraftKings and Fanatics signed agreements to share 31% of their in-state revenue while FanDuel agreed at a 33% revenue-sharing agreement.

BetMGM sportsbook and ESPN BET sportsbook had their applications denied by the committee. According to the Department of Liquor and Lottery commissioner Wendy Knight, BetMGM proposed a “variable revenue share based on the number of operators selected” plan. This type of plan had already been rejected during a Q&A period while Vermont was accepting requests for proposals (RFP).

ESPN Bet didn’t include all the required documentation with their application, and so they weren’t considered compliant. Knight stressed that they didn’t reject either of the sportsbooks, they just didn’t meet the minimum requirements.

Unlike other states in the region, Vermont sports betting is taking a very cautious approach. There are no retail sportsbooks or the option to place bets through the Vermont Lottery. Mobile sports betting is the only available option, including daily fantasy bets. The logic behind this decision is that it’s easier to verify a person’s age and limit how much they can bet on a mobile app than when placing in-person bets.

Other regulations include: 

• All bettors must be 21 and older.
• No betting on Vermont collegiate sports, unless they’re in a tournament like March Madness or college bowl games.
• No betting on sports where the players are under 18.
• Sportsbook promos can’t offer “Free Bets,” unless they are actually free.
• Credit cards are not a valid payment method.

The regulations above are part of Vermont’s dedication to creating a safe environment for mobile sports betting as possible. They go hand-in-hand with the responsible gambling programs that sportsbooks and the US government have across the country. There will also be player limits, time-outs, free access to responsible gaming resources. Additionally, each of the sportsbook is required to provide an annual responsible gaming plan to keep their license. This will include: 

• Materials related to problem gambling.
• Resources for bettors that they identify as having a possible gambling problem.
• Sportsbook-imposed player limits.
• Self-exclusion programs. 

While Vermont is taking a slow approach to online sports betting, Gov. Scott said they will be monitoring the situation both in-state and in the region. This can mean that they will increase the number of US Sportsbooks or add in a retail option.

From a financial perspective, the state estimates that between the revenue-sharing and taxes, sports betting should bring in approximately $7 million in 2023. That number is expected to increase as sports betting becomes more normative for Vermonters, and potentially reach $18 million a year by 2029.