Vermont: Online sports betting back on the Legislature agenda, bill clears first committee

Sports betting legalization is back on the agenda of the Vermont Legislature. While the proposal failed to pass in previous legislative sessions, proponents believe that this time around a more substantial and detailed bill – which has the voiced support from Gov. Phil Scott – might finally reach the finish line. 

Bill H. 127 was introduced by Rep. Matthew Birong (D-Addison-3) in the House on January 31. It has already cleared its first hurdle, passing the Government Operations and Military Affairs Committee on Tuesday by a 9-3 vote. The proposal has now been referred to the Ways and Means Committee.

The legislation addresses many previous concerns raised by opponents of legal sports betting, among them outlining how tax revenue will be collected and used. This includes yearly contributions of at least $250,000 per year to a “Responsible Gaming Special Fund” overseen by the Vermont Department of Mental Health.

“I would say that the piece of legislation that was voted out of the Government Operations Committee was the most thoughtful and robust piece of legislation that either of the legislative bodies have worked on to this point,” said Birong, as per Brattleboro Reformer.

“Right now there is a tremendous amount of illegal wagering that’s happening on nefarious websites, a lot of offshore activity,” he added. “We, as responsible legislators, need to take a hard look at how we can put protections in place for people who are engaging in it, and bring it into a legal market with vetted operators.”

The legislation aims to pull users from the black market while regulating the new industry, in addition to providing infrastructure to support problem gamblers. The plan aims to legalize sports betting on a mobile basis, without room for retail wagering, since Vermont doesn’t have casinos, racinos or pari-mutuel wagering facilities.

But a new legal market would also permit Vermont to keep dollars that are currently being lost to other states, as many Vermonters travel over state lines to New York, New Hampshire or Massachusetts to place their wagers legally. Vermont is the only state in New England, or the entire Northeast U.S., that has not passed some sort of legislation on sports betting. 

During the Tuesday committee meeting, Dr. Kelley Klein, medical director for the Vermont Department of Mental Health (DMH), stressed the importance of building infrastructure for identifying and treating problem gambling, notes Brattleboro Reformer.

The latest bill would do more to address help for Vermonters than previous iterations, allocating 2.5% of tax revenue or $250,000 (whichever is higher) towards DMH’s programming in the first year, with a jump to 5 percent or $500,000 in the second year. The rest of the tax revenue would be allocated to the general fund.

The bill would grant authority for licensing to the Department of Liquor and Lottery to select anywhere from two to six sports gambling operators. Part of the selection process will be gambling establishments bidding to the DLL on how much of their revenue they will share in tax dollars.

Vermont remains one of the most restrictive states in the US when it comes to legal gaming. The only forms of gambling currently permitted are the Vermont Lottery and small games of chance that charities and nonprofits are allowed to operate.