Vermont Lining Up To Be Next For Sports Betting
Vermont Montpelier
Until recently, Vermont’s chances of establishing a sportsbook sector by the end of 2022 looked dead in the water. The only live bill in circulation, filed last March by Senator Dick Sears, has still not been presented to the chamber for voting purposes. However, a new bill detailing parameters for a new sports betting marketplace has suddenly materialised.
Although only a week remains of the current legislative session, there is still hope that this proposal can be advanced prior to the Senate closedown on 17th May. Submissions can be made up until the very last day of term, with lawmakers able to transfer any outstanding legislation to the Senate Economic Development Committee. Should the committee decide not to advance the proposal, sports betting advocates will have to wait until the Vermont General Assembly reconvenes in January.
The Green Mountain State could certainly do with the financial shot in the arm that the establishment of a sports betting industry would inevitably produce. The harrowing impacts of COVID-19 have catalysed a labour shortage across the state, and served to diminish revenues for a substantial number of local businesses. A $10bn cash injection provided by the federal government temporarily papered over the cracks, but key political figures fear that a reduced summer budget will soon expose Vermont’s economic issues.
Indeed, local media outlet, Seven Days Vermont, recently reported that the local legislature’s key economic advisor, Jeff Carr, ‘’predicts general funds will drop by $17m in 2024, as the stimulus funds dry up and tax revenues come back to earth’’. In accordance to the draft bill itself, successful implementation of its proposals would lead to tax revenues ‘’from $640,000 to $4.8m in the first year of sports wagering’’.
If the templated legislation is pushed through, Vermont would facilitate up to six mobile betting companies, with prospective sportsbook operators applying for a license through the state’s Department of Lottery. Each suitor would then be marked against a set of strict criteria, with licenses allocated dependent on the results. The initial cost of a gambling permit would be $50k, with a yearly renewal charge of $20k. Operators would also need to factor a $100k annual operational fee into their respective budgets.
There is technically still an opportunity for Sears’ original proposal, Senate Bill 77, of being passed prior to next Tuesday’s cut-off. However, even the bill’s principles sponsor has seemingly conceded defeat, with Sears stating, ‘’unfortunately, the chances are slim to none with just a few days left in the session’’.
Nevertheless, given the potential financial opportunity on the table, you wouldn’t bet against the secondary bill finding its way through the Senate before Vermont’s lawmakers meet again at the turn of the year.
