Vermont Committee Suggests New York-Like Sports Betting Model
The committee studying whether and how to legalize sports betting in Vermont has put the finishing touches on its suggestions, including the idea that legislators may want to embrace a design similar to the high-tax jurisdictions of New Hampshire and New York City.
After meeting throughout the fall, Vermont's Sports Betting Study Committee reunited briefly today to settle its report to the legislature, which advises the New England state legislate and authorize online sports .
Doing so would help convert the state's existing, unlawful market for sports wagering into a "robust, regulated market," the report states, in addition to providing customers with more defense and creating tax income for the state.
Back in the New York groove
The last report to the legislature advises a minimum of 2 but not more than six online sportsbook operators for Vermont, the only New England state that has not yet legalized sports wagering.
Moreover, the report recommends a "state-control" model that will select those operators through a competitive bidding procedure for "unique agreements" to use sports betting in the state.
And, while the committee agreed that a state-controlled design would be best for legal sports betting in Vermont, which has no casinos or racetracks, the members likewise concurred that the state shouldn't use its own betting platform by means of the lotto. Instead, the committee members want something more along the lines of what some other neighboring jurisdictions have actually done.
"The Committee recommends that a sports betting expense must establish a competitive bidding process for the choice of the State's sports betting operators," the report said. "The competitive bidding procedure may be structured to be similar to New Hampshire or New York City."
Both New York and New Hampshire have a 51% tax rate on online sportsbooks, and for New Hampshire that just uses to the state's sole operator, DraftKings. Furthermore, in New York City, the fairly high tax rate has prompted some operators to pare back their costs, even in a competitive market occupied by 9 mobile bookmakers.
Nevertheless, Vermont's research study committee, which was formed by legislation passed previously this year, said it took "comprehensive testimony" on tax rates and earnings shares and decided against an official recommendation for a minimum level. That was regardless of testimony from the market that promoted a statutory rate, as it was argued that would supply predictability and spur competitors in the state.
Instead, the committee chose to agree arguments in favor of an undefined earnings share, such as that it would provide more revenue for the state.
Going mobile
The final report from Vermont's sports betting committee now puts the ball in the court of legislators in the state when they go back to Montpelier in early January. Vermont remains the only holdout when it concerns legal sports wagering in New England, but Gov. Phil Scott still supports guideline and was recently reelected.
In addition to a suggestion to adopt "extensive" procedures to address issue gambling, the committee also decided on a purely online design for sports betting in the sparsely-populated state. There will be, however, some investigation into whether brick-and-mortar video gaming would work as well.