Reduction in Available Sportsbooks for Vermont Residents: From Five Options, Now Only Three Remain
Vermont's digital sports betting scene is all set to kick off at 12:01 a.m. on January 11, but with a reducing lineup. Despite the legal framework allowing up to six digital platforms, the state only received five bids. PENN Entertainment and BetMGM were among the applicants, but their bids lacked crucial components and unconventional revenue-sharing models, respectively, making them ineligible.
PENN Entertainment's bid with its ESPN BET platform never made it to the consideration phase due to missing paperwork. On the other hand, BetMGM's bid was evaluated, but their tiered revenue-sharing model tanked their score, as it conflicted with the state's guidelines.
"PENN was considered indefensible due to the missing documents in their proposal, and we overlooked them," Commissioner Wendy Knight shared with Sports Handle. "The final four bids were considered, but BetMGM proposed a revenue share system based on the number of operators selected, which violated the clearly stated rules in the RFP. Consequently, their scoring was significantly lower."
Vermont will be the last New England state to embrace live sports betting, following Maine and Massachusetts, who launched their markets in November and Q1 2023, respectively. Other New England states have been operational since 2021 or earlier.
Vermont, like its neighbors, has leaned on Massachusetts sports betting regulations for guidance, prioritizing consumer protection, a well-structured legal framework, and responsible gambling measures.
When the betting action goes live in Vermont, apps from DraftKings, Fanatics Sportsbook, and FanDuel will be accessible. In keeping with the new law, brick-and-mortar sportsbooks will not be an option.
The initial launch date was set for January 1, but a discussion with operators and modifications to the lottery system during a busy October weekend prompted a change to a quieter weekday, with ample time to prepare for the Super Bowl.
Consumer protection was a top priority during the bid process, as stated clearly by the legislature. The new law set a minimum revenue share of 20%, and bidders were encouraged to propose higher percentages. DraftKings and Fanatics registered a 31% revenue share, while FanDuel proposed 33%, making Vermont the only live betting state hosting operators with varying revenue rates.
The new sports betting law represents the first attempt by Vermont to earmark funds for problem gambling initiatives. This funding will support the development of a comprehensive responsible gambling program, incorporating the lottery and sports betting, and ensuring the market stays secure for consumers.
In addition to major sports, Vermont has approved a diverse range of wagering events, including competitive tag, drone racing, esports, and mini golf. The new law also sets constraints on prop bets and prohibits wagering on injuries, suspensions, and certain officiating situations.
Furthermore, the legislation bans advertising to minors, and betting on Vermont college teams is limited to specific circumstances. The Department of Mental Health will receive $250,000 annually for problem and responsible gambling initiatives. Operators began accepting sign-ups in early December.
To ensure the safety of bettors, operators are required to verify customer identities, implement tools like deposit and wagering limits, and comply with age and location restrictions verified through geolocation technology. Vermont also provides a 24/7 hotline for support and resources for individuals struggling with gambling issues. The Department of Liquor and Lottery oversees the online sports betting market, ensuring compliance with protective regulations.
- Despite missing paperwork, PENN Entertainment's bid with ESPN BET was ineligible for consideration in Vermont's digital sports betting scene.
- BetMGM's bid was evaluated but their unconventional revenue-sharing model violated the state's guidelines, leading to a lower score.
- Vermont will be the last New England state to offer live sports betting, following Maine and Massachusetts.
- Consumer protection was a top priority during the bid process, with a minimum revenue share of 20% set by the new law.
- DraftKings, Fanatics Sportsbook, and FanDuel will be accessible when sports betting goes live in Vermont, but brick-and-mortar sportsbooks will not be an option.
- Vermont has approved a diverse range of wagering events, including competitive tag, drone racing, esports, and mini golf, but has set constraints on prop bets and prohibited wagering on injuries, suspensions, and certain officiating situations.
- The Department of Mental Health will receive $250,000 annually for problem and responsible gambling initiatives, and operators are required to comply with age and location restrictions, deposit and wagering limits, and customer identity verification.
- Vermont provides a 24/7 hotline for support and resources for individuals struggling with gambling issues, and the Department of Liquor and Lottery oversees the online sports betting market to ensure compliance with protective regulations.
