Three sports betting providers have been selected to service the Vermont betting market with the mobile launch less than a month away.
The Big 3
Perhaps it is not surprising that the national sports betting duopoly of DraftKings and FanDuel were obvious choices for Vermont’s Department of Liquor and Lottery. But the third sports betting platform provider chosen has been making its presence increasingly known and Fanatics will now add Vermont to its growing list of markets.
All three mobile sportsbooks signed six-year deals with extensions if both parties agree to continue working with each other. The digital sports betting industry is projected to generate $7 million for the state in its inaugural year.
Vermont Liquor and Lottery Commissioner Wendy Knight said the projections for the first year of revenue exceeded initial estimates. “We are excited to offer sports enthusiasts the ability to engage in sports wagering in Vermont with three of the industry’s top companies,” she commented.
Vermont Governor Phil Scott also announced mobile sports betting would go live on January 11, 2024, saying in a statement, “I first proposed Vermont legalize sports wagering several years ago, and it’s good to see it come to fruition. 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.”
“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,” Scott said in a statement.
Revenue Producers
Although three sports betting platforms were chosen, the committee did have the ability to issue five licenses but chose not to allow the other two bidders, Penn Entertainment’s ESPN BET and BetMGM, into the market. It has been reported ESPN BET was missing paperwork while BetMGM’s revenue-sharing model was unacceptable.
According to Department of Liquor and Lottery Commissioner Knight, DraftKings and Fanatics Sportsbook will each pay 31% of their adjusted gross revenue while FanDuel will pay 33%.
“Frankly I am thrilled with the revenue share that we were able to secure with the operators,” Knight said. “It’s much higher than it would have been in a tax rate.”
Griffin Finan, senior vice president and deputy general counsel for Boston-based DraftKings, said the Boston-based bookmaker was eagerly anticipating entering the Vermont market and “expanding our presence in New England and introducing eligible customers in the state to the DraftKings Sportsbook, equipped with a plethora of betting options and a robust suite of responsible gaming tools.”
Gambling Concerns
And speaking of responsible gambling, Commissioner Knight also commented on the topic by saying, “They set wagering limits. They set deposit limits or timeout periods. There’s a self-exclusion list so that if players feel like they need to sort of stop wagering for a period of time, they can put themselves on a self-exclusion list.”
Those 21 and over will be able to secure an account with one of the three platform providers and preregistration is available to those who wish to sign up before the launch date.
