Vermont Governor Phil Scott recently signed into law H. 127, legalizing online sports wagering and fantasy sports contests in the state.
Online sports wagering is expected to start no later than January 2024.
Under the law, the Vermont Department of Liquor and Lottery is tasked with overseeing a competitive bidding process to award contracts to a minimum of two and a maximum of six sports wagering operators. The Department will also oversee the registration process for fantasy sports contest operators.
As part of the competitive bidding process for the online sports wagering operators, the Department will set the revenue share fee (tax), but it shall not be less than 20% of adjusted gross sports wagering revenue. The selected operators shall pay an operator fee of $550,000, but the term of the license can be negotiated. However, the law specifically states that the operator fee shall not be payable more than once in a three-year period.
Operators awarded a license may offer sports wagering to adults 21 years of age or older who are physically located in Vermont. Events must be approved by the Department. There are also restrictions on accepting wagers on sporting events in which Vermont collegiate or high school teams participate.
It is anticipated that the request for proposals will be released from the Department in July with a return date in August. The Department will hopefully evaluate and select the sports wagering operators by September. The Department and the sports wagering operator would than negotiate the agreements by December, allowing the selected operators to prepare for operation commencing in January 2024.
Under the fantasy sports law, fantasy sports contest operators will be required to register annually by October 15th of each year and pay a $5,000 registration fee. Fantasy sports contest operators who register with the Department will be permitted to offer cash prizes to adults 18 years of age or older and physically located in Vermont.
The law does not address licensure processes for suppliers, vendors and/or marketing affiliates to either the sports wagering operators or the fantasy sports contest operators. These procedures are likely to be addressed by the Department rules.
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