Vermont Embraces Online Sports Betting with FanDuel, DraftKings Launch

Vermont Ushers in New Era with Online Sports Betting

In a landmark move, Vermont has officially opened its online sports betting (OSB) market, marking a significant step in the state’s gambling landscape. As of 12am ET on January 11, Vermont residents and visitors can place bets with leading sportsbooks FanDuel, DraftKings, and Fanatics.

Anticipated Revenue Boost for Vermont

The Green Mountain State is set to reap significant financial benefits from the introduction of OSB. Initial forecasts predict a tax revenue of $7 million in the first full year of operation, with potential growth to $15-18 million annually as the market matures.

Selective Licensing Process

Vermont’s Department of Liquor and Lottery (DLL) oversaw a competitive bidding process to grant operating licenses to FanDuel, DraftKings, and Fanatics. Despite offering up to six licenses, not all interested operators made the cut. ESPN Bet, under Penn Entertainment, withdrew due to documentation issues, while BetMGM’s revenue-sharing model did not align with the DLL’s criteria.

DLL Commissioner Comments on Launch

DLL Commissioner Wendy Knight expressed satisfaction with the chosen operators. “We are delighted to bring three esteemed companies to provide a secure, regulated mobile sports wagering platform,” Knight stated.

Debate Over Licensing Fees

The legislative framework, House Bill 127, signed by Governor Phil Scott in June last year, imposed a 20% revenue tax and a stringent $550,000 fee for a three-year license. Critics have noted that this fee is relatively steep given Vermont’s population of just 750,000, potentially limiting the number of operators.

FanDuel and DraftKings: A Competitive Presence

The state’s launch has sparked a renewed competition between FanDuel and DraftKings, leaders in the US mobile betting market. While FanDuel maintains a lead in online sports betting revenue, DraftKings holds the upper hand in combined OSB and iGaming revenue.

DraftKings’ Excitement for Regional Expansion

Matt Kalish, co-founder of DraftKings, expressed enthusiasm about the expansion in New England. “As a Boston-based company, we’re excited to bring safe, legal sports betting to Vermont,” he remarked.

As Vermont steps into the online sports betting arena, the state not only opens up new revenue streams but also joins a growing list of US states embracing digital gambling platforms.