- Five operators have submitted bids for Vermont online sports betting licenses
- Vermont will allow between two to six operators when it launches sports betting
- Online sports betting is expected to begin in January
Five operators have submitted bids to the Department of Liquor and Lottery for Vermont online sports betting licenses.
FanDuel, BetMGM, DraftKings, Fanatics Betting and Gaming, and Penn Sports Interactive (ESPN Bet) were the first five operators to submit applications to operate in the Green Mountain State.
Vermont Gov. Phil Scott (D) signed the state’s online sports betting bill into law this past June.
Sports Betting Likely in January
Sports betting is expected to launch in Vermont in January 2024 and will feature between two to six operators. The state’s Department of Liquor and Lottery will regulate sports betting and award sports betting licenses. The five bidders will now go through a “competitive bidding process” to receive a license. Much like New York’s competitive bidding process, the operators have submitted bid packages to the department that include a proposed online sports betting tax rate they would be willing to pay to operate in the state.
If an operator is chosen by the Department of Liquor and Lottery for a license, the contract will be for a minimum of three years at a cost of $550,000 for a license. So, for example, if an operator agrees to a five-year contract, it will have to pay $110,000 annually for each of the five years.
The Department of Liquor and Lottery will evaluate the applications based off of certain technical and revenue criteria on a 1,000 point grading rubric.
The department allows for 200 maximum points based off of revenue criteria, or the applicants proposed tax rate. The minimum sports betting tax rate allowed in Vermont will be 20%. Bidders who propose a 20% to 30% tax rate will receive 25 points, while bidders who propose a tax rate of 51% or higher will receive 100 points. The remaining 100 possible points will be awarded for estimated potential gross and adjusted gross sports wagering revenue.
The final 800 possible points will be awarded for technical criteria, such as the strength of the bidder’s sports betting services, its responsible gaming plan, and company integrity and ethics.
The sports betting contracts will likely be awarded in October or November.
College Sports Betting Prohibitions
The bill allows for betting on college sports, but does place a prohibition on bets placed on in-state colleges and universities. Many states offer this prohibition, including neighboring Massachusetts and New York.
However, the DLL will allow bets on Vermont colleges or universities if the school is participating in a tournament, such as the annual March Madness tournament, even if the tournament is taking place in the state.
The minimum age to participate in sports betting in Vermont will be 21.
The post Five Operators Submit Bids for Vermont Sports Betting Licenses appeared first on Sports Betting Dime.
