The Vermont Senate has given initial approval to a legislation that would legalize online sports betting

On Wednesday, the Vermont Senate granted preliminary approval to a bill that legalizes online sports betting in the state.

The Senate made some changes to the regulations proposed in the House version of the bill. Bill H127 will require final approval from the Senate and then it will return to the House for review. If the bill is enacted, a legal sports betting market is expected to be operational by January 2024.

Under H127, up to six companies will be permitted to operate sportsbooks within Vermont. The bill also creates a specific fund to hold the revenue and fees collected by the state from overseeing the market. A portion of this money will be allocated to programs and resources aimed at addressing problem gambling.

Sen. Alison Clarkson, D-Windsor, who presented H127 on the Senate floor, emphasized the many safeguards included in the legislation to ensure responsible gaming. This was reported by VT Digger.

H.127, as revised by the Senate, maintains the House’s recommendation that Vermont receive at least 20% of the adjusted gross revenue generated by sports betting operators annually. However, it changes the operating fees imposed by the state on each company.

According to the Senate bill, each operator would be required to pay a fee of $550,000 no more than once every three years. In contrast, the House suggested that operators be charged an annual fee varying based on the number of competitors in the market, ranging from $550,000 per year for one operator down to $125,000 per year for six operators.

Sen. Thomas Chittenden, D-Chittenden Southeast, who serves on the Senate Finance Committee, explained that the committee believed this alteration would encourage sportsbook companies to remain in Vermont for longer periods. Additionally, Chittenden proposed that higher fees for more operators could bring in more revenue for the state.

On Wednesday, Sen. Alison Clarkson reported that the Legislature’s Joint Fiscal Office had projected relatively modest revenue from legal sports betting in Vermont, approximately $2 million, in the 2024 fiscal year. She anticipated that this amount would rise to between $4.5 million and $10.5 million in 2025 before stabilizing around $10 million per year thereafter.

The Senate also decided to remove a provision from the House version of the bill that would have limited the amount of money that sports betting operators could spend on advertising. Sen. Alison Clarkson, along with other senators on the Economic Development, Housing, and General Affairs Committee, believed that the legislation should not be overly prescriptive when it comes to the agreements between the state and sports betting operators concerning their advertising strategies.

Wendy Knight, the commissioner of the Vermont Department of Liquor and Lottery, which would be responsible for overseeing the market, expressed confidence that her agency could establish stringent advertising guidelines without a monetary cap imposed by lawmakers.

H127 mandates that sports betting companies restrict advertising aimed at individuals under the age of 21, who are legally barred from using wagering platforms. It also prohibits companies from targeting college campuses with their ads.

A further amendment appended to the bill on Wednesday doubles the fines that unlicensed sports betting companies or organizations would face. The first offense would carry a fine of $50,000, the second offense $150,000, and any subsequent infractions $300,000, according to the text of the amendment.