The launch of Vermont online sports betting has officially arrived.
In fact, technically speaking, it is in the rear view. The debut of legal online sports betting in Vermont came at midnight, January 11, 2024. And it was met with much fanfare, especially by Governor Phil Scott, who has been a proponent of bringing legal sports gambling to The Green Mountain State for years.
Of course, now that online sports betting throughout Vermont is live, we have a few questions. Which online sportsbooks in the United States can residents access? How did the state go about selecting the sports betting providers allowed to operate in-market? Just how much revenue will this generate for the state? And so on and so forth.
Stick with us as we break down all the important notes following an historical moment for the state of Vermont—as well as the United States sports betting industry at large.
Which Operators Have Been Licensed to Offer Vermont Online Sports Betting?
Three online sportsbooks in the USA are licensed to operate in Vermont: DraftKings, FanDuel and Fanatics. Two of these are non-surprises. DraftKings and FanDuel make up a vast majority of the online sports betting market share in the USA. Fanatics’ inclusion is slightly more surprising. Then again, they have ultra-aggressively tried to expand their market share since launching in 2023. These efforts include purchasing PointsBet’s sports betting operations in the United States for almost one-quarter of a billion dollars.
Perhaps the biggest surprise is which operators are not listed. Both BetMGM and Penn Entertainment’s ESPN Bet applied for licenses. They were not granted. Even more bizarrely, they were not denied on the basis of limited opportunities. The Vermont Department of Liquor and Lottery, which oversees sports betting operations, had the ability to license up to six online sportsbooks. Immediately, it isn’t clear why ESPN Bet and BetMGM didn’t make the cut. However, as Matthew Waters noted for Legal Sports Report, Vermont online sports betting license applications were judged across nine categories and earned points for their performance:
- Company experience, resources, financial stability: up to 100 points
- Company integrity and ethics: up to 80 points
- General design and implementation of sports betting product: up to 120 points
- Strength of the sports betting hardware and software: up to 140 points
- Strength of the bidder’s sports betting services: up to 140 points
- Bidder’s compliance program: up to 60 points
- Responsible Gambling: up to 140 points
- Accounting and audit program: up to 20 points
- Revenue criteria: up to 200 points
Vermont did not release the results for how each sportsbook fared. But it stands to reason their system determined BetMGM and the relatively new ESPN weren’t up to snuff.
What Sporting Events Can You Bet On In Vermont?
Since it’s coming up on Sunday, February 11, let’s answer a question almost everyone is bound to have: Yes, you can bet on Super Bowl 58 in Vermont.
Really, the same goes for all the major sports and events: The NBA, NHL, Major League Baseball, college basketball, college football, tennis, golf and soccer. Beyond those, the list of events Vermont online sports betting will accept wagers for also includes the follow niche categories:
- Bandy, similar to hockey
- Competitive tag
- Drone racing
- Futsal, similar to soccer
- Netball, similar to basketball
- Ultimate Frisbee
- Windsurfing
To be sure, this is not the full list of Vermont sports betting opportunities. The entire catalog can be viewed on the official website for the Vermont Department of Liquor and Lottery.
If for some reason the sport or event you wish to wager on isn’t included, try to give it some time. States new to legal sports betting tend to expand their catalog of offerings in the first year based on demand. There’s a chance the sport, league or event you’re looking for will invariably show up.
How Much Revenue is Vermont Online Sports Betting Expected to Generate?
State officials project that Vermont online sports betting will generate $7 million in revenue during its first year. Granted, these forecasts can change. And first-year guesstimates are always tricky.
Vermont, in many ways, is a unique case study. They do not have pro sports teams in the market. They also have the second lowest population in the USA, at under 650,000, trailing only Wyoming. Can a state that tiny really expect to make millions from online sports betting?
They can.
For starters, Vermont borders New York, a powerhouse sports market. Vermont’s residents are bound to have interest in various leagues and events. What’s more, the legalization of online sports betting throughout Vermont sets up the state to capitalize on market trends. The overwhelming majority of sports bets placed in the United States are processed through online operators. Not only is Vermont offering the most popular type of access, but they licensed the two most popular sportsbooks in the country.
Furthermore, multiple outlets reported that licensed sports betting operators in Vermont will pay tax at rate of 20 percent of adjusted gross sports gaming revenue. That’s higher than the national average. And it means Vermont online sports betting can make more for the state without rivaling the gambling handle of bigger markets.
Some might point to Wyoming’s modest returns since launching online sports betting as evidence Vermont is overshooting their initial goal. Maybe that’s true. But a higher tax rate coupled with proximity to a bigger sports market likely ensures Vermont can generate more online sports betting revenue than their population suggests.
Take a look at this list of the top online sportsbooks so you can find one that works for all of your sports betting needs:
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