Online Sports Betting Bill Clears Another Vermont Committee

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


The Vermont Senate's finance committee met again on Tuesday and authorized a changed variation of House Bill 127, legislation that would bring legal sports betting to the state via mobile apps and websites.


While Vermont is the only New England state that has not legalized sports wagering, H. 127 would change that and put the state's Department of Liquor and Lottery in charge of event wagering once Vermont sports wagering is legislated. The department would perform a competitive bidding procedure 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 insufficient deserving prospects.


Bookmakers would have to turn over a share of the revenue from sports wagering to Vermont, and the bill needs that cut to be no less than 20% of adjusted receipts. Operators will also need to fork over an annual fee.


Fee-faraw


The Senate finance committee had actually been playing with the idea of tweaking that fee structure. When H. 127 showed up in committee, the legislation proposed that a single operator would have to pay $550,000 a year, while 2 operators would prompt payments of $412,500, 3 would need $366,666, four $343,750, five $330,000, and six $320,833.


Senators then hung around recently thinking about other charge structures before settling Tuesday on an in advance payment of $550,000, which would cover the cost of regulating the industry.


It will be up to the Department of Liquor and Lottery to work out with an operator over the length of their contract and when they would need to pay the $550,000 again. Nevertheless, the change authorized Tuesday says bookmakers will not be charged more than as soon as in any three-year period.


Tracking modifications


Other changes authorized by the financing committee on Tuesday consist of tweaking the name of a "Sports Wagering Fund," where the fees and earnings from sports wagering will be deposited, to the "Sports Wagering Enterprise Fund."


Another change the financing committee made was to ensure profits of sports wagering done within the state can be taxed, comparable to what's done with lotto earnings.


If H. 127 remains amended, it needs to go back to Vermont's Legislature when the Senate is completed, as the previous chamber has already passed the expense and would need to consent to the modifications. That said, Tuesday's vote nudges the legal sports wagering costs closer to the finish line.