Vermont Committee Suggests New York-Like Sports Betting Model
The committee studying whether and how to legalize sports betting in Vermont has put the complements on its suggestions, consisting of the tip that legislators might wish to adopt a model similar to the high-tax jurisdictions of New Hampshire and New York.
After meeting throughout the fall, Vermont's Sports Betting Study Committee reunited briefly this week to settle its report to the legislature, which advises the New England state legalize and authorize online sports betting websites.
Doing so would assist convert the state's existing, prohibited market for sports betting into a "robust, regulated market," the report states, in addition to supplying consumers with more security and producing tax profits for the state.
Back in the New york city groove
The final report to the legislature suggests a minimum of two but not more than six online sportsbook operators for Vermont, the only New England state that has not yet legalized sports betting.
Moreover, the report recommends a "state-control" design that will pick those operators through a competitive bidding procedure for "exclusive agreements" to provide sports betting in the state.
And, while the committee concurred that a state-controlled model would be best for legal sports betting in Vermont, which has no casinos or racetracks, the members also concurred that the state should not provide its own wagering platform by means of the lotto. Instead, the committee members want something more along the lines of what some other neighboring jurisdictions have done.
"The Committee recommends that a sports betting bill should establish a competitive bidding procedure for the selection of the State's sports betting operators," the report stated. "The competitive bidding process might be structured to be comparable to New Hampshire or New York City."
Both New York City and New Hampshire have a 51% tax rate on online sportsbooks, and for New Hampshire that only applies to the operator, DraftKings. Furthermore, in New York City, the relatively high tax rate has prompted some operators to pare back their costs, even in a competitive market occupied by nine mobile bookmakers.
Nevertheless, Vermont's research study committee, which was formed by legislation passed previously this year, stated it took "substantial testimony" on tax rates and revenue shares and decided versus an official recommendation for a minimum level. That was despite testimony from the industry that pushed for a statutory rate, as it was argued that would provide predictability and spur competition in the state.
Instead, the committee decided to side with arguments in favor of an undefined profits share, such as that it would supply 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 return to Montpelier in early January. Vermont stays the only holdout when it pertains to legal sports betting in New England, however Gov. Phil Scott still supports regulation and was recently reelected.
In addition to a recommendation to embrace "extensive" procedures to address issue betting, the committee also settled on a simply online design for sports betting in the sparsely-populated state. There will be, however, some investigation into whether brick-and-mortar gaming would work also.