The revenue from sports gambling in Vermont is expected to surpass initial estimates, with Gov. Phil Scott anticipating a much larger tax revenue than previously projected. Since the activity began on January 11, 2024, there has been strong uptake and a soaring appetite for placing wagers in The Green Mountain State.
Despite being a small state, Vermont is set to generate around $3 million in tax revenue from sports gambling, significantly higher than the initial estimate of $1 million. Adam Greshin of the Budget and Finance Committee noted that the state anticipates generating more revenue than originally forecasted in the first six months of the fiscal year. Currently, the state has licensed three entities for sports betting – DraftKings, FanDuel, and Fanatics. BetMGM and ESPN Bet have not been granted admission into the state yet, as Vermont will only allow three licenses for the time being.
Apart from tax revenue, Vermont is also benefitting from licensing fees, which cost operators $500,000, as well as annual fees that decrease per operator. The legal gambling age in the state is 21, and the collectible tax is set at 20%. Additionally, affiliate betting companies, such as Catena Media, have also entered the market in Vermont.
Vermont’s sports fans are enthusiastic about the new sports gambling opportunities, despite not having an official professional sports team. Locals are passionate supporters of prominent franchises such as the Patriots, the Celtics, the Bruins, and the Red Sox. The launch of sports gambling in Vermont has coincided with major sporting events like the Super Bowl, the NFL Playoffs, and the upcoming March Madness.
Overall, the state of Vermont is poised to see a substantial boost in tax revenue from sports gambling, reflecting the strong interest and uptake in sports betting activities within the state.