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

The committee studying whether and how to legalize sports betting in Vermont has put the complements on its suggestions, consisting of the idea that legislators may wish to adopt a design similar to the high-tax jurisdictions of New Hampshire and New York.


After satisfying throughout the fall, Vermont's Sports Betting Study Committee reunited quickly today to finalize its report to the legislature, which advises the New England state legalize and authorize online sites.


Doing so would assist transform the state's existing, unlawful market for sports betting into a "robust, regulated market," the report says, in addition to supplying customers with more security and creating tax revenue for the state.


Back in the New york city groove


The final report to the legislature recommends 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 recommends a "state-control" model that will pick those operators through a competitive bidding procedure for "special agreements" to use sports betting in the state.


And, while the committee agreed that a state-controlled design would be best for legal sports wagering in Vermont, which has no casinos or racetracks, the members likewise agreed that the state shouldn't provide its own wagering platform via the lotto. Instead, the committee members want something more along the lines of what some other neighboring jurisdictions have done.


"The Committee suggests that a sports wagering bill ought to establish a competitive bidding procedure for the choice of the State's sports wagering operators," the report said. "The competitive bidding procedure might be structured to be similar to New Hampshire or New York City."


Both New York and New Hampshire have a 51% tax rate on online sportsbooks, and for New Hampshire that only applies to the state's sole operator, DraftKings. Furthermore, in New York, the fairly high tax rate has actually prompted some operators to pare back their costs, even in a competitive market occupied by 9 mobile bookies.


Nevertheless, Vermont's study committee, which was formed by legislation passed earlier this year, stated it took "comprehensive testimony" on tax rates and earnings shares and decided against a formal suggestion for a minimum level. That was regardless of testament from the industry that pressed for a statutory rate, as it was argued that would provide predictability and stimulate competition in the state.


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


Going mobile


The last report from Vermont's sports wagering committee now puts the ball in the court of legislators in the state when they go back to Montpelier in early January. Vermont remains the only holdout when it pertains to legal sports betting in New England, but Gov. Phil Scott still supports regulation and was recently reelected.


In addition to a suggestion to embrace "extensive" procedures to address issue gambling, the committee also decided on a purely online design for sports betting in the sparsely-populated state. There will be, however, some examination into whether brick-and-mortar gaming would work too.