By law, Vermonters could have had up to six digital sports betting platforms to choose from when the industry launches at 12:01 a.m. on Jan. 11, but the state received five bids and two major operators made critical omissions or errors in their bids.
PENN Entertainment failed to include required documents in the Vermont sports betting request for proposals and BetMGM offered up a tiered revenue-share model that ultimately took it out of the running, Vermont Department of Liquor and Lottery Commissioner Wendy Knight told Sports Handle Wednesday.
PENN’s bid to be in the state with its ESPN BET platform was never even considered. BetMGM’s was, but the tiered revenue share it offered dramatically lowered its score used by the state regulator to evaluate which applicants should be licensed.
“PENN was deemed materially non-compliant because some of the documents were not included in their proposal, and so we never considered them,” Knight said. “The final four all got considered, but BetMGM sent a revenue proposal that was tier-based on how many operators were selected. We put in the RFP that that is not OK. The rubric was very clear, so the fact that they submitted this tiered revenue share, their scoring was much lower.”
Vermont will become the final New England state to offer live sports betting. launched their two-platform market in November and Massachusetts launched in the first quarter of 2023. Every other New England state has been live since 2021 or earlier.
Like its neighbors, Vermont has focused on MA sports betting regulations as a reference point, emphasizing consumer protection, a legal market framework, and responsible gambling measures.
When wagering goes live in Vermont, FanDuel will be available. Betting will be online only, as the new law does not allow for brick-and-mortar sportsbooks.
State officials had planned for a Jan. 1 launch, but after talking with operators and implementing a change on the lottery side during a busy weekend in October, the decision was made to go live on a quieter weekday in plenty of time to prepare for the Super Bowl.
Top priorities included consumer protections 6e1w70
In addition to the major professional sports, Vermont’s mini golf. It also sets limitations around prop bets and does not allow for betting on injuries, suspensions, and some officiating-related situations.
In selecting operators during the bid process, Knight said that the legislature clearly laid out what the priorities should be: protecting Vermonters from problem gambling, shutting down the illegal market, and bringing in the most amount of revenue possible for the state. The new law set revenue share at a minimum of 20%, and bidders were encouraged to go higher.
Knight said that DraftKings and Fanatics both pitched a 31% revenue share, while FanDuel pitched 33%. Vermont will be the only live wagering state in which operators pay different amounts.
The new sports betting law is the first effort in Vermont to require funding for problem and responsible gambling, Knight noted, adding that the funding will allow the state to build out a “comprehensive responsible gaming program that will incorporate the lottery and sports betting” and that the state will be “very intentional about making this as safe as possible for [consumers].”
Furthermore, the new law prohibits advertising to minors and doesn’t allow for wagering on Vermont college teams, except in some unique circumstances. The Department of Mental Health will get $250,000 per year to dedicate to problem and responsible gambling initiatives.
The state allowed operators to begin taking s in early December.
