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Sports betting is set to launch in Vermont next month following the selection of three operators to offer online betting by state regulators on Tuesday (December 12).
The Vermont Department of Liquor and Lottery (DLL) announced that it had selected FanDuel, DraftKings and Fanatics to be the state’s three licensed mobile sports-betting operators after a competitive bidding process.
The department said that legal sports wagering will begin on January 11.
After Governor Phil Scott signed House Bill 127 into law in June, the DLL was tasked with selecting up to six operators to offer mobile wagering in the state via a process in which operators would be graded on a set of criteria that included their proposed revenue share to the state.
“I first proposed Vermont legalize sports wagering several years ago, and it’s good to see it come to fruition,” Scott said in a statement Tuesday. “Vermonters and visitors alike will soon be able to access a regulated sports wagering marketplace, which will come with important consumer protections and generate revenue for the state.”
Operators were required to submit a proposed adjusted gross revenue share of at least 20 percent, and would receive additional points towards their score if their share exceeded thresholds of 30 percent, 40 percent and 50 percent.
Wendy Knight, commissioner of the DLL, told local news outlet Vermont Public that FanDuel will pay a 33 percent revenue share to the state, while DraftKings and Fanatics will pay a 31 percent share.
The adjusted gross revenue share allows for federal excise tax payments to be deducted, but does not permit deductions for promotional play.
The three companies will also have to pay a $550,000 operator fee for a six-year term.
Knight also disclosed that five outlets had applied, with BetMGM and Penn Entertainment’s ESPN BET being the two that were not selected, adding that Penn was missing documents in its application, while BetMGM had proposed a revenue-sharing model that would be based on how many operators were selected.
The state has projected $7m in revenue sharing payments in its first year of operation.
According to Vixio GamblingCompliance research, Vermont's sports-betting market is projected to generate about $28m in gross gaming revenue in 2024, and about $47m in 2027 upon further maturity.
Operators were allowed to begin marketing their brands and pre-registering players effective Tuesday, as the contracts have been fully executed.
