Sports Betting Bill forwarded to the governor’s desk by the Vermont House

Vermont is on the verge of legalizing sports betting, as the state House has approved House Bill 127, which paves the way for online sports wagering. The legislation is now on its way to Governor Phil Scott‘s desk, and he has expressed his intention to sign the bill.

HB 127 underwent a rigorous journey, requiring passage through the House, review by multiple Senate committees, incorporation of Senate amendments, and a subsequent return to the House for further consideration.

The bill was introduced by Representative Matthew Birong and supported by nine other House members. If approved, the Department of Liquor and Lottery would oversee the regulation of betting, issuing a minimum of two and a maximum of six online sports betting licenses. Notably, the bill does not include provisions for brick-and-mortar sportsbooks.

The amendments made by the Senate introduced a clear framework for licensing fees, which are tiered based on the number of operators selected for contracts. Under this structure, if two operators are chosen, each will pay $412,500. For three operators, the fee per operator will be $366,666; for four operators, $343,750; for five operators, $330,000; and for six operators, $320,833.

To be eligible, operators seeking to establish their presence in the state must commit to allocating at least 20 percent of their gross gaming revenue to the state. This requirement must be met in order for their applications to be considered.

The Senate committee introduced certain provisions to the bill, including a restriction on sportsbooks from advertising during events primarily targeted at individuals under the age of 21. Additionally, sportsbooks are required to submit annual marketing strategies to the state to demonstrate their efforts in preventing advertising materials from reaching minors.

Incorporated into the bill are also provisions that mandate sportsbooks to promote responsible gaming and provide resources for individuals seeking help with controlling their gambling habits. Furthermore, the Senate committee directed the Vermont Department of Liquor and Lottery, the regulatory body for expanded gaming under HB 127, to allocate 5 percent of sports betting receipts to establish a new fund for problem gambling.

The bill outlines a regulatory timeline, aiming to make online offerings accessible to Vermont residents by January 2024.