{"id":520,"date":"2026-01-06T13:50:55","date_gmt":"2026-01-06T18:50:55","guid":{"rendered":"https:\/\/www.squawka.com\/us\/?post_type=news&#038;p=520"},"modified":"2026-01-14T10:51:40","modified_gmt":"2026-01-14T15:51:40","slug":"vermont-sports-betting-explainer","status":"publish","type":"news","link":"https:\/\/www.squawka.com\/us\/news\/vermont-sports-betting-explainer\/","title":{"rendered":"Vermont Sports Betting Explainer"},"content":{"rendered":"\n<p>The Green Mountain State, Vermont, officially entered the regulated sports wagering market on <strong>January 11, 2024<\/strong>, becoming the 38th state to launch legal sports betting. Unlike many jurisdictions that permit both retail and online operations, Vermont&#8217;s legislative framework is exclusively focused on <strong>mobile sports wagering<\/strong>, a strategic decision that reflects the state&#8217;s low population density and lack of major professional sports venues. The launch followed a competitive bidding process that resulted in the selection of three major national operators, establishing a concentrated, high-revenue-share market from the outset. This approach positions Vermont as a unique case study in the Northeast, prioritizing high tax revenue through limited licensing and a revenue-share model over a broad, multi-operator competitive landscape.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-overview-of-vermont-sports-betting\"><a><\/a>Overview of Vermont Sports Betting<\/h2>\n\n\n\n<p>The following table summarizes the key regulatory and operational attributes of the Vermont sports betting market, providing a snapshot of its legal status and framework.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><td><strong>Entity<\/strong><\/td><td><strong>Attribute<\/strong><\/td><td><strong>Value<\/strong><\/td><\/tr><\/thead><tbody><tr><td><strong>Legal Status<\/strong><\/td><td>Online Sports Betting<\/td><td>Legal<\/td><\/tr><tr><td><strong>Launch Date<\/strong><\/td><td>Official Start Date<\/td><td>January 11, 2024<\/td><\/tr><tr><td><strong>Legislation<\/strong><\/td><td>Authorizing Bill<\/td><td>H.127 (Act 63)<\/td><\/tr><tr><td><strong>Regulator<\/strong><\/td><td>Oversight Body<\/td><td>Department of Liquor and Lottery (DLL)<\/td><\/tr><tr><td><strong>Tax Rate<\/strong><\/td><td>Adjusted Gross Revenue (AGR)<\/td><td>Variable (31% &#8211; 33%)<\/td><\/tr><tr><td><strong>Licensing Model<\/strong><\/td><td>Structure<\/td><td>Competitive Bid (Max 6 Operators)<\/td><\/tr><tr><td><strong>Retail Betting<\/strong><\/td><td>Status<\/td><td>Illegal (Online Only)<\/td><\/tr><tr><td><strong>Legal Betting Age<\/strong><\/td><td>Minimum Age<\/td><td>21+<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-licensed-operators-and-market-structure\"><a><\/a>Licensed Operators and Market Structure<\/h2>\n\n\n\n<p>Vermont&#8217;s market is characterized by a limited number of highly recognizable national brands, a direct outcome of the state&#8217;s competitive bidding process managed by the Department of Liquor and Lottery (DLL). The state&#8217;s legislation permitted a maximum of six operators, but the DLL initially selected only three to launch the market.<\/p>\n\n\n\n<p>The three licensed and currently operating mobile sportsbooks are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>DraftKings<\/strong><\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.squawka.com\/us\/bet\/betting-sites\/fanduel\/\">FanDuel<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.squawka.com\/us\/bet\/betting-sites\/fanatics\/\">Fanatics Sportsbook<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<p>This concentrated market structure was designed to maximize state revenue. While the authorizing legislation set a minimum revenue share of 20% of adjusted gross revenue (AGR), the competitive nature of the bidding process drove the effective tax rate significantly higher. <strong>DraftKings<\/strong> and <strong>Fanatics Sportsbook<\/strong> agreed to a 31% revenue share, while <strong>FanDuel<\/strong> committed to a 33% share, making Vermont&#8217;s effective tax rate one of the highest in the nation.<\/p>\n\n\n\n<p>&#8220;The competitive bidding process was a deliberate strategy by the state to ensure that Vermont taxpayers receive the maximum benefit from this new industry. By limiting the number of licenses, the state was able to command a premium revenue share from the most established operators in the country.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-legislative-journey-and-regulatory-framework\"><a><\/a>Legislative Journey and Regulatory Framework<\/h2>\n\n\n\n<p>The path to legal sports betting in Vermont was a measured and deliberate one, culminating in the passage of <strong>H.127 (Act 63)<\/strong> in 2023. Governor Phil Scott, who had previously expressed caution regarding gambling expansion, signed the bill into law on June 14, 2023, following years of legislative study and debate.<\/p>\n\n\n\n<p>The regulatory framework established by H.127 is notable for its emphasis on a state-run, competitive procurement model. The DLL was tasked with soliciting bids from prospective operators, evaluating them based on a range of criteria including proposed revenue share, responsible gaming commitments, and technical capability. This model contrasts sharply with the open-market, high-license-fee approach adopted by many other states. The state&#8217;s focus on a revenue-share model, rather than a fixed tax rate, ensures that the state&#8217;s financial return scales directly with the operators&#8217; success.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-daily-fantasy-sports-and-prediction-markets\"><a><\/a>Daily Fantasy Sports and Prediction Markets<\/h2>\n\n\n\n<p>Vermont has a long-standing, permissive stance on Daily Fantasy Sports (DFS). The state legalized DFS in 2017, well before the advent of full-scale sports betting, establishing a clear regulatory environment for operators like <strong>DraftKings<\/strong> and <strong>FanDuel<\/strong> to offer their fantasy contests.<\/p>\n\n\n\n<p>The status of newer formats, such as <strong>prediction markets<\/strong> (e.g., Kalshi, PrizePicks), is more nuanced. While prediction markets often operate under the federal oversight of the Commodity Futures Trading Commission (CFTC), their availability to Vermont residents is generally tied to the specific product&#8217;s classification. Products that are structured as peer-to-peer event contracts, like those offered by Kalshi, are federally regulated and typically available, whereas pick&#8217;em style games that resemble prop bets may face regulatory scrutiny under the state&#8217;s sports wagering laws.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tribal-gaming-and-professional-sports-landscape\"><a><\/a>Tribal Gaming and Professional Sports Landscape<\/h2>\n\n\n\n<p>Vermont is one of the few states in the U.S. that does not have any federally recognized Native American tribes. Consequently, the issue of <strong>tribal gaming<\/strong> and the negotiation of tribal-state compacts, which is a central component of sports betting legalization in many other jurisdictions, is entirely absent from the Vermont regulatory discussion. The state&#8217;s market is therefore a purely commercial, state-controlled enterprise.<\/p>\n\n\n\n<p>Furthermore, Vermont is unique in the Northeast for its lack of a <strong>major professional sports team<\/strong>. While the state boasts a passionate college sports following, particularly for the University of Vermont Catamounts, and is home to minor league teams like the Vermont Lake Monsters, the absence of an NFL, NBA, MLB, or NHL franchise means that the market is not driven by local team partnerships or allegiances in the same way as neighboring states. This factor likely contributed to the state&#8217;s decision to pursue an online-only model, as there were no established retail venues (like professional stadiums or casinos) to anchor physical sportsbooks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-unique-state-characteristics-and-future-outlook\"><a><\/a>Unique State Characteristics and Future Outlook<\/h2>\n\n\n\n<p>Vermont&#8217;s <a href=\"https:\/\/www.squawka.com\/us\/bet\/betting-sites\/\">sports betting<\/a> framework is defined by two key unique characteristics: the <strong>competitive bid tax structure<\/strong> and the <strong>online-only mandate<\/strong>.<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Competitive Bid Tax Structure:<\/strong> The effective tax rate of 31-33% is a direct result of the DLL&#8217;s successful competitive bidding process. This model is a significant departure from the fixed-rate tax systems common elsewhere and has been highly effective in maximizing state revenue per operator.<\/li>\n\n\n\n<li><strong>Online-Only Focus:<\/strong> The decision to exclude retail sportsbooks simplifies the regulatory landscape and aligns with the state&#8217;s demographic reality, ensuring accessibility across the rural state without the need for costly physical infrastructure.<\/li>\n<\/ol>\n\n\n\n<p>The future outlook for Vermont&#8217;s sports betting market is one of stability and high revenue generation. With three of the industry&#8217;s largest operators secured at premium revenue-share rates, the state is well-positioned to capture a significant portion of the wagering handle from its residents. While the market is currently limited to three operators, the DLL retains the option to license up to three additional operators in the future, which could introduce new competition and potentially adjust the revenue-share dynamics. Any future expansion would likely be driven by the state&#8217;s desire to further increase revenue or to introduce greater consumer choice.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Green Mountain State, Vermont, officially entered the regulated sports wagering market on January 11, 2024, becoming the 38th state to launch legal sports betting. Unlike many jurisdictions that permit both retail and online operations, Vermont&#8217;s legislative framework is exclusively focused on mobile sports wagering, a strategic decision that reflects the state&#8217;s low population density&#8230;<\/p>\n","protected":false},"author":394,"featured_media":776,"parent":0,"menu_order":0,"template":"","meta":{"_acf_changed":false,"_yoast_wpseo_focuskw":"","_yoast_wpseo_title":"Vermont Sports Betting Explained","_yoast_wpseo_metadesc":"Complete guide to Vermont sports betting. Discover legal operators, launch date, and how to bet on sports in Vermont. Updated %%currentmonth%% %%currentyear%%.","footnotes":""},"tags":[],"news-category":[],"class_list":["post-520","news","type-news","status-publish","has-post-thumbnail","hentry"],"acf":{"external_featured_image_url":"","hide_featured_image_pattern":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Vermont Sports Betting Explained<\/title>\n<meta name=\"description\" content=\"Complete guide to Vermont sports betting. Discover legal operators, launch date, and how to bet on sports in Vermont. 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