This is not necessarily bad, as Gov. Phil Scott now anticipates seeing much more significant revenue from sports gambling than initially thought. Uptake has been strong in the weeks since January 11, 2024, when the activity got underway with an appetite for placing a wager soaring in The Green Mountain State.
Bigger Buck for a Minnow State
Vermont is also a small state and a minnow by any meaningful standard, but an early estimate of $1 million in tax revenue from sports gambling may be a little short of the actual figure, which hews closer to $3 million based on updated figures by state officials.
“They believe that six months of this fiscal year will produce a bit more revenue than we had originally forecast,” Adam Greshin of the Budget and Finance Committee said. The state’s sports betting state is rather barren split between DraftKings, FanDuel, and Fanatics being the three licensed entities in the state.
BetMGM and ESPN Bet did not gain admittance into the state just yet, and only three candidates have been chosen. They are unlikely to do so any time soon, as Vermont has only wants three licenses running for the time being. Just like revenue expectations, though, this may change. Vermont is also benefiting from initial licensing fees, which cost operators $500,000 along with a fee that decreases annually per operator. The gambling age is 21 and the collectible tax is 20%.
In the meantime, affiliate betting companies have too entered the market, with Catena Media determined to maintain a healthy presence locally.
Sports Buffs All Over Vermont
The adjusted projections in terms of sports betting tax come against an interesting backdrop. Vermont, for example, does not have an official professional sports team, but locals are passionate sports fans all the same, supporting many prominent franchises, including the Patriots, the Celtics and Bruins, the Red Sox, and others.
Vermont has been able to launch sports gambling just in time for the Super Bowl, the NFL Playoffs, and ahead of March Madness which is due to commence in several weeks.