Vermont lawmakers push to repeal online sports betting after first year of launch

Three Vermont lawmakers have introduced a bill to repeal the state's recently legalized online sports betting market. On February 4, Representatives Thomas Stevens (D), Troy Headrick (I), and Michael Mrowicki (D) filed Bill H.133, which seeks to reverse the statutes authorizing the state lottery and online sports betting.

The bill is now under review by the House Committee on Government Operations and Military Affairs. The move comes as a surprise as none of the bill’s sponsors had previously been outspoken critics of online sports betting. 

In a conversation with PlayUSA, Headrick, the only sponsor to publicly comment on the bill, said that he is concerned most of the state’s gambling tax revenue comes from low-income bettors.

Vermont was the last New England state to legalize online sports betting, launching its market in January 2024. Over the past year, the state saw a total handle of $198.7 million and gross revenues of $21.9 million.

Nearly 30% of Vermont’s total betting handle came from out-of-state bettors, reversing a long-standing trend of Vermonters crossing into neighboring states to place bets.

The state initially partnered with DraftKings, FanDuel, and Fanatics to operate within the state, though the law allows for up to six platforms.

While the $6.3 million in tax revenue collected in the first year fell slightly short of projections, industry analysts partly attributed this to an unusual NFL season that saw many sportsbooks struggle.

With Vermont facing financial pressures and a successful first year for sports betting, Bill H.133 may struggle to gain traction. As the federal government plans budget cuts, Vermont could be reluctant to forgo the tax revenue from sports betting.