Online Sports Betting Bill Clears Another Vermont Committee

Sports wagering sites are one action closer to introducing in Vermont after pro-wagering legislation passed another Senate committee.


The Vermont Senate's financing committee satisfied again on Tuesday and approved a changed version of House Bill 127, legislation that would bring legal sports wagering to the state via mobile apps and websites.


While Vermont is the only New England state that has not legalized sports betting, H. 127 would change that and put the state's Department of Liquor and Lottery in charge of event wagering when Vermont sports wagering is legislated. The department would carry out a competitive bidding to select two to six operators of mobile sportsbooks to take wagers in the state, although it could pick one or no operators if there are not sufficient deserving candidates.


Bookmakers would need to turn over a share of the profits from sports wagering to Vermont, and the expense requires that cut to be no less than 20% of adjusted receipts. Operators will also have to shell out a yearly charge.


Fee-faraw


The Senate finance committee had actually been playing with the concept of tweaking that fee structure. When H. 127 arrived in committee, the legislation proposed that a single operator would need to pay $550,000 a year, while two operators would trigger payments of $412,500, three would need $366,666, 4 $343,750, 5 $330,000, and 6 $320,833.


Senators then hung out last week considering other fee structures before settling Tuesday on an upfront payment of $550,000, which would cover the expense of regulating the market.


It will be up to the Department of Liquor and Lottery to work out with an operator over the length of their agreement and when they would have to pay the $550,000 once again. Nevertheless, the modification approved Tuesday says bookmakers will not be charged more than when in any three-year period.


Tracking changes


Other changes approved by the financing committee on Tuesday consist of tweaking the name of a "Sports Wagering Fund," where the costs and profits from sports betting will be transferred, to the "Sports Wagering Enterprise Fund."


Another modification the financing committee made was to ensure earnings of sports wagering done within the state can be taxed, comparable to what's done with lottery game jackpots.


If H. 127 remains changed, it must return to Vermont's House of Representatives when the Senate is ended up, as the former chamber has already passed the costs and would need to consent to the modifications. That said, Tuesday's vote pushes the legal sports betting costs closer to the finish line.