Legislation Regarding Online Sports Betting in Vermont Advances Through Assembly Committee
Every year since 2018, Vermont has discussed sports betting bills in Montpelier, following the US Supreme Court's decision to overturn a federal law limiting single-game sports wagering to Nevada. The chances of a sports gambling bill passing in the Green Mountain State are now higher than ever.
On January 31, state Rep. Matthew Birong (D-Addison 3) introduced House Bill 127, a bill with bipartisan support, featuring six Democrats and three Republicans as cosponsors.
HB127 is aimed at legitimizing online sportsbooks within the state, giving access only to individuals aged 21 and above and physically present in Vermont.
The bill received endorsement this week in the House Ways and Means Committee, after receiving a reading in the committee focused on boosting tax revenue. The committee members passed the bill with a near consensus vote.
The legislation has since been sent to the House Appropriations Committee for further deliberation.
Bill Details
Advocates of legalizing sports betting within Vermont state that their goal is twofold.
They assert that a regulated sports betting market protects consumers from engaging with unsecured offshore online sportsbooks without player safeguards or dispute resolution mechanisms. Supporters also advocate for maintaining gaming revenue within the state, rather than seeing it flow to neighboring states that permit sports betting.
Vermont borders three states — New York, New Hampshire, and Massachusetts. Sports betting, both in-person and online, is legal in all three.
Currently, 33 states, alongside Washington, D.C., host operational legal sports betting. Three more states have passed regulations for sports gambling but have yet to commence operations. North Carolina, Kentucky, and Missouri are among the states considering sports betting bills this year.
Should HB 127 gain approval in the Vermont House and Senate and be signed by Gov. Phil Scott (R), it would grant the Vermont Department of Liquor and Lottery the authority to accept applications from mobile sportsbook operators.
The lottery commission would be obligated to issue at least two online sportsbook permits, but not more than six. Each applicant deemed fit for a license would need to pay the state an annual license fee of $275K.
Prioritizing Responsible Gaming
Birong endeavors to gain backing from gaming critics by incorporating provisions in the sports betting bill that focus on responsible gaming. HB 127 requires that 2.5% or $250K, whichever is greater, is allocated from the sports betting tax for a newly created Responsible Gaming Special Fund.
Birong's bill also mandates that each operator submits an annual responsible gaming plan to the state, detailing how the sportsbook will inform players about responsible gaming resources and self-exclusion programs. HB 127 would prevent a sportsbook from obtaining an operating license until the company's responsible gaming strategy is approved by the Liquor and Lottery Department.
The Liquor and Lottery Department would additionally be required to present the state with an annual report on how sports betting has impacted problem gambling in Vermont. The report will be prepared in collaboration with the Vermont Department of Mental Health.
