Vermont Committee Suggests New York-Like Sports Betting Model
The committee studying whether and how to legislate sports wagering in Vermont has put the finishing touches on its recommendations, including the recommendation that lawmakers might want to embrace a design comparable to the high-tax jurisdictions of New Hampshire and New York.
After fulfilling throughout the fall, Vermont's Sports Betting Study Committee reunited quickly this week to settle its report to the legislature, which suggests the New England state legislate and license online sports wagering websites.
Doing so would help convert the state's existing, unlawful market for sports betting into a "robust, regulated market," the report says, in addition to providing customers with more security and creating tax earnings for the state.
Back in the New york city groove
The last report to the legislature recommends a minimum of two but not more than 6 online sportsbook operators for Vermont, the only New England state that has not yet legalized sports betting.
Moreover, the report prescribes a "state-control" design that will pick those operators through a competitive bidding procedure for "exclusive agreements" to offer 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 gambling establishments or racetracks, the members likewise concurred that the state shouldn't use its own wagering platform via the lottery. Instead, the committee members want something more along the lines of what some other neighboring jurisdictions have done.
"The Committee suggests that a sports betting bill should develop a competitive bidding procedure for the choice of the State's sports wagering operators," the report stated. "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 only applies to the state's sole operator, DraftKings. Furthermore, in New York City, the relatively high tax rate has actually some operators to pare back their spending, even in a competitive market occupied by nine mobile bookies.
Nevertheless, Vermont's research study committee, which was formed by legislation passed previously this year, stated it took "extensive testament" on tax rates and profits shares and chosen against an official recommendation for a minimum level. That was despite testimony from the industry that promoted a statutory rate, as it was argued that would supply predictability and spur competitors in the state.
Instead, the committee decided to side with arguments in favor of an undefined income share, such as that it would offer more income for the state.
Going mobile
The final report from Vermont's sports betting committee now puts the ball in the court of lawmakers in the state when they return to Montpelier in early January. Vermont stays the lone holdout when it comes to legal sports betting in New England, but Gov. Phil Scott still supports guideline and was recently reelected.
In addition to a suggestion to adopt "detailed" procedures to resolve problem gambling, the committee likewise picked a simply online model for sports wagering in the sparsely-populated state. There will be, however, some examination into whether brick-and-mortar gaming would work as well.