Vermont Sports Betting Overview
Vermont legalized online sports betting in June 2023 and launched on January 11, 2024. The state first licensed three online sportsbooks, DraftKings, FanDuel, and Fanatics Sportsbook, and rejected applications from BetMGM and Penn Sports Interactive. The goal was to provide a regulated market under the Vermont Department of Liquor and Lottery, protect consumers, and generate revenue for the state.
Vermonters and visitors to the Green Mountain State bet over $100 million in the first six months of legalization, and the operators made $11 million. The state’s take was $3.5m, which exceeded projections. That money was primarily funneled into the state's general fund to support various public services.
Some of the sports betting revenue goes to addressing problem gambling. In the 2024 fiscal year, Vermont put $250,000 from sports betting into the state’s budget, and the Vermont Lottery matched that with $250,000 to fund resources managed by the Department of Mental Health. Those funds will go towards a website and live chat support for individuals seeking help with gambling issues.
The tax rate for sports betting in Vermont is 31-33% of adjusted gross revenue for the operators. For individual bettors, winnings are taxed federally and at the state level. Vermonters are taxed 6% on their gambling winnings, non-residents 7.25%.
Online sports wagering in Vermont is still in its infancy, but it's already seen significant interest from locals and received a sizable boost from visitors. In the first month of legal sports betting in Vermont, data shows that 53% of accounts were opened by people visiting from out of state. In the first six months, those visitors had a significantly higher average bet ($34.33) than locals ($19.05). It will be interesting to monitor if out-of-state players continue to have a significant effect on the industry in the years to come.