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Five prominent sports betting operators, including FanDuel, BetMGM, DraftKings, Fanatics, and Penn Interactive (ESPN Bet), have submitted bids to obtain online sports betting licenses in Vermont. This move comes after Vermont Governor Phil Scott signed the state’s online sports betting bill into law earlier this year, paving the way for the legalization of sports betting in the Green Mountain State.
Sports betting is set to launch in Vermont in January 2024 and will feature between two to six operators. These operators will go through a competitive bidding process to secure licenses, with the state’s Department of Liquor and Lottery overseeing and regulating the market.
As part of the licensing process, operators are required to submit bid packages that include a proposed online sports betting tax rate they are willing to pay to operate in the state. Preference will be given to bidders who collaborate with Vermont-based companies, utilize products manufactured in the state, and demonstrate business practices that promote clean energy and address climate change.
The minimum duration of a licensing contract is three years and costs $550,000. Applications will be evaluated based on technical and revenue criteria, with a minimum sports betting tax rate of 20%. The Department of Liquor and Lottery will allow for a maximum of 200 points based on revenue criteria or the applicant’s proposed tax rate.
Bidders who propose a tax rate of 20% to 30% will receive 25 points, while those suggesting a tax rate of 51% or higher will receive 100 points. The remaining 100 points will be awarded based on estimated potential gross and adjusted gross sports wagering revenue.
Furthermore, the final 800 possible points will be awarded for technical criteria, which include evaluating the strength of the bidder’s sports betting services, their responsible gaming plan, and their company integrity and ethics.
The contracts for awarded licenses are expected to be granted in October or November, making Vermont one of the latest states to enter the rapidly growing legalized sports betting market. This move signals a significant step towards providing Vermont residents with legal and regulated sports betting options, while also generating revenue for the state through taxes and licensing fees.