Vermont authorizes latest sports betting operational guidelines
The Vermont Lottery Gears Up for Sports Betting
In a quiet yet significant move, the Vermont Lottery Board recently greenlit "optimized procedures" for sports betting. This decision paves the way for the launch of wagering by early 2024. The vote was unanimous, and there's room for future amendments.
After the 12-minute meeting, Lottery Commissioner Wendy Knight fielded questions on horse racing betting. Knight confirmed that parimutuel betting - currently illegal in Vermont - would not feature on the state's sports betting menu.
So far, the lottery has received feedback from five stakeholders, the latest being BetMGM and geolocation service GeoComply. Operators have voiced concerns, and Knight informed the board that suggested language from these comments has been integrated, offering "clarity without conflicting with the law." For instance, references to "business days" have been changed to "calendar days," and the usage of "shall" and "may" has been updated accordingly.
However, the lottery staff has put off addressing comments concerning issues prevalent in other states, such as requiring operators to provide source code during the testing and certification process – an issue that remains unresolved.
The latest revised procedures have been published, incorporating suggestions from some operators. Yet, multiple operators have pushed for a change in the rule requiring them to provide source code to Gaming Laboratories International. Despite these requests, this requirement continues to stand.
Enhanced Responsible Gambling Measures
GeoComply targeted a specific addition to the rules, recommending an alternative method for operators to verify potential customers during the know-your-customer process. This method involves "historical behavioral account, device, and location verification," and has been proven effective in strengthening the account creation process while reducing customer friction.
Other changes include:
- Prohibition of proxy betting
- Defining a "collegiate sports tournament" as one involving at least four teams, making it possible to bet on any team in a state-based tournament
- Clarifying that a "team owner" is anyone with a 5% or larger stake
- Removing a section requiring a "description of a sporting event and wagering proposition"
- Loosening language that required operators to specify which fields were "required" on a registration form
- Adding a section to reinforce responsible gaming principles, ensuring that individuals on the self-exclusion list do not receive marketing materials
- Updating exclusion list regulations based on feedback from several operators, allowing settled and distributed wagers made before a player joins a self-exclusion list or is added to an involuntary exclusion list
The board also discussed what to do with unclaimed funds from dormant accounts. If a patron cannot be traced, the funds will be sent to the state treasurer's office.
For a comprehensive guide on sportsbook operators and betting locations across Vermont, check out this guide for MA sports betting locations.
Insights:
- The legal age for sports betting in Vermont is 21, differing from the previous age limit of 18 for daily fantasy sports.
- Sports betting is currently online-only, with mobile betting allowed through licensed operators such as FanDuel, DraftKings, and Fanatics Sportsbook.
- Vermont has a state tax of 6% on sports betting winnings for residents and 7.25% for non-residents, in addition to a 24% federal tax.
- It's known that several operators, including BetMGM, have expressed interest in entering the Vermont market, but have faced technical issues with their license applications.
In the revised sports-betting procedures, there's a proposed alternative method for operators to verify potential customers, using historical behavioral account, device, and location verification, aimed at strengthening account creation while reducing friction. The board also updated the exclusion list regulations, allowing settled and distributed wagers made before a player joins a self-exclusion list or is added to an involuntary exclusion list.
