Vermont, the last New England state to legalize sports betting, is making significant progress towards launching wagering in the state. With the bid process underway for the selection of mobile sports betting operators authorized by a sports betting law signed in June, Vermont is on track to join its neighboring states in offering this popular form of gambling.
Vermont’s purchasing agency, on behalf of regulators at the Department of Liquor and Lottery (DLL), recently issued a 125-page request for proposal (RFP) for sports betting operators. The RFP outlines the requirements and qualifications for potential operators to participate in the state’s sports betting program.
Bids from interested operators are due by August 28th, and the DLL expects to select the winning bids no later than September 22nd. Once selected, the operators will enter into negotiations with the state for a three-year contract. There will be anywhere from two to six operators awarded licenses.
“At that point, the operators that are selected will be notified and basically in the state of Vermont, what we do is we notify them of our intent to contract with them,” DLL Commissioner Wendy Knight told Gaming Today. ”They are invited into a contract negotiation with the state.”
Vermont has set an ambitious timeline for launching its sports betting program. The state intends to have the program up and running no later than January 1, 2024. This timeline puts Vermont just a month behind its neighboring state, Maine, which plans to launch sports betting in November. With the legalization of sports betting in Maine in August 2022, Vermont’s program is poised to generate annual state revenue of approximately $10.6 million, according to official estimates.
Vermont’s sports betting regulation stands out from many other states in several ways. Firstly, the regulations are referred to as “enhanced procedures,” emphasizing the state’s commitment to a comprehensive and meticulous approach. Secondly, instead of traditional taxes, sports betting operators will share a percentage of their revenue with the state. This revenue share is a crucial aspect of the contract between the operators and Vermont.
Additionally, licensing is not referred to as licensing but rather as a contract, highlighting the collaborative nature of the relationship between the state and the operators.
To be considered for a contract with Vermont, sportsbook companies must submit comprehensive bids that address specific criteria. The DLL expects bidders to provide an estimate of their potential sports betting revenue and the percentage of revenue they are willing to share with the state, with a minimum required share of 20 percent. Bidders must also indicate the number of individually branded websites they propose to use for sports wagering operations. Furthermore, a responsible gaming plan and safeguards, along with a detailed market analysis, are essential components of a bid.
The state also looks at if they are a Vermont company, or have a relationship with the state. The operator’s player acquisition model, advertising and affiliate programs, marketing budget, integrity monitoring systems, and a plan for maximizing sustainable long-term revenue for the state are also significant considerations.
Some of the other requirements for the RFP include a section regarding diversity. Bidders will be required to share company policy and data surrounding demographics and how they will further “foster” diversity should they be awarded a contract.
Another section of the RFP is entitled “Solidarity With the Ukrainian People.” Bidders are asked to select a box that says no “goods, products or materials offered in response to this solicitation are Russian-sourced goods or produced by Russian entities.”
Other stipulations include estimates for adjusted gross revenue, how many branded websites would be used, a responsible gaming plan, a list of where the company is already licensed, a player-acquisition model, how long it would take to get to market, a detailed description of the operator’s integrity monitoring program and a plan to maximize revenue to the state.
While Knight said the number of licenses awarded depend on the above factors, she is eager to get sports betting launched. In a letter to the state Senate Appropriations Committee on April 27, Knight wrote about her intent.
“Time is critical with the sports wagering bill,” Knight wrote in the letter. “The sooner the General Assembly passes the bill, the sooner DLL can set up the regulated market. I know the Committee shares the Administration’s commitment to legalizing — at long last — sports wagering in Vermont.”
