Vermont Committee Suggests Brand-new York-Like Sports Betting Model

The committee studying whether and how to wagering in Vermont has actually put the finishing touches on its suggestions, consisting of the recommendation that lawmakers might wish to embrace a model similar to the high-tax jurisdictions of New Hampshire and New York.


After satisfying throughout the fall, Vermont's Sports Betting Study Committee met once again briefly today to settle its report to the legislature, which suggests the New England state legalize and license online sports betting sites.


Doing so would help convert the state's existing, unlawful market for sports betting into a "robust, regulated market," the report states, in addition to providing consumers with more defense and producing tax revenue for the state.


Back in the New York groove


The last report to the legislature advises a minimum of two but not more than 6 online sportsbook operators for Vermont, the only New England state that has not yet legalized sports wagering.


Moreover, the report prescribes a "state-control" design that will choose those operators through a competitive bidding process for "special contracts" to provide sports betting in the state.


And, while the committee agreed that a state-controlled model would be best for legal sports betting in Vermont, which has no gambling establishments or racetracks, the members likewise agreed that the state shouldn't use its own betting platform via the lotto. Instead, the committee members desire something more along the lines of what some other nearby jurisdictions have done.


"The Committee recommends that a sports betting bill should establish a competitive bidding process for the selection of the State's sports betting operators," the report stated. "The competitive bidding process might be structured to be similar to New Hampshire or New York City."


Both New York City and New Hampshire have a 51% tax rate on online sportsbooks, and for New Hampshire that only uses to the state's sole operator, DraftKings. Furthermore, in New York, the reasonably high tax rate has triggered some operators to pare back their spending, even in a competitive market populated by nine mobile bookies.


Nevertheless, Vermont's research study committee, which was formed by legislation passed previously this year, stated it took "substantial statement" on tax rates and earnings shares and chosen versus a formal suggestion for a minimum level. That was in spite of testimony from the market that pressed for a statutory rate, as it was argued that would supply predictability and spur competition in the state.


Instead, the committee chose to agree arguments in favor of an undefined earnings share, such as that it would offer more earnings for the state.


Going mobile


The final report from Vermont's sports wagering committee now puts the ball in the court of legislators in the state when they return to Montpelier in early January. Vermont remains the lone holdout when it concerns legal sports betting in New England, however Gov. Phil Scott still supports policy and was recently reelected.


In addition to a recommendation to adopt "comprehensive" steps to address problem gambling, the committee likewise chose a simply online design for sports wagering in the sparsely-populated state. There will be, nevertheless, some examination into whether brick-and-mortar video gaming would work too.