Vermont Passes Sports Betting Legislation

After getting a look at HB 127, Vermont's latest sports betting legislation, the Senate made a few minor changes. They then proceeded to pass the legislation via a voice vote held on May 4, 2023. So, Vermont residents will be able to start betting on sports very soon.

This is great news for Vermont residents. To date, they have been trekking to other states in order to make legal sports bets. In the process, other New England states have been able to build their tax revenue on the backs of Vermont sports bettors.

Moving forward, the Senate-passed bill will now go back to the House. House representatives will now have a chance to adopt the Senate's changes. Should they say yes, the bill would then move to the desk of Vermont Governor Phil Scott for his signature.

Senate Discussions That Drive Passage of the Bill

When assessing whether or not to pass HB 127, the Vermont Senate provided several motivations for moving forward with the bill. Here is a sampling of these motivations:

• Open the door to stronger consumer protections that might not be in place in other states
  
• Capture tax revenue for Vermont's coffers
  
• The elimination of illicit sports betting activities that are currently taking place among Vermont residents
  

Spearheading the advocating for sports betting in Vermont was Senate Majority Leader Alison Clarkson. In a press release, she stated:

“Vermonters legally betting in New York state or Massachusetts means lost revenue to Vermont. And regulating sports wagering in Vermont keeps that revenue stream here where it is needed.”

It's worth noting that after all changes were discussed and adopted, the bill passed the Senate with no opposition.

Details of HB 127

Based on the provisions of the bill, The Vermont Legislative Joint Fiscal Office estimates that the state will pull in about $10 million in annual sports betting tax revenue. Here are some other details related to the legislation:

• Sports betting in Vermont will be governed by the Department of Liquor and Lottery (DLL)
  
• The DLL will have the authority to license 2 to 6 online sports betting operators
  
• Betting on in-state colleges and universities will only be allowed during tournament events like Match Madness (NCAA Basketball)
  
• THe effective tax rate charged to operators will be 20% of gross sports betting revenue
  
• Initial license fees will be set at $550K for a minimum of three (3) years. Longer license contracts can be negotiated
  
• Credit cards cannot be used to fund online gambling accounts
  
• Operators must institute designated problem gambling initiatives
  
• Online/Mobile sports bettors must be at least 21 years of age
  

Assuming everything goes along without any meaningful glitches, legislators would like to see a sports betting launch in January of 2024 if not sooner. That would be in time for the start of the NFL playoffs and league competition for NCAA basketball. Updates should be forthcoming in the next few weeks.