BetMGM, DraftKings, FanDuel, Fanatics Betting and Gaming, and PENN Entertainment have submitted bids for the right to offer sports betting in Vermont, where lawmakers earlier this year legalized digital-only betting. The list was published late Monday on the state’s government website after a Request for Proposals was opened in July. The original deadline for bids was Aug. 28, but the deadline was extended to Sept. 6.
The biggest operator not on the list is Caesars Sportsbook. DraftKings is the only operator live in every state that borders Vermont.
The bids themselves are not yet available, but Vermont’s new law allows for up to six digital platforms, and bids will be vetted based on a rubric based out of 1,000 points with 800 possible points allotted to the “Technical Criteria” section and 200 allotted to the “Revenue Criteria” section. Bidders will get preference for working with companies based in Vermont, using products manufactured in the state, and “demonstrating business practices that promote clean energy and address climate change.”
Selected operators, which must already be licensed and operating in at least three U.S. jurisdictions, will sign a contract with the state for three years. Among the other qualifications needed to bid were that operators be “full service,” have responsible gambling programs and provide a detailed explanation of integrity monitoring plans.
Proposed tax rate will be key driver
Bidders were required to spell out how they would bring in the most revenue for the state and how long it would take to get to market. The new law sets the tax rate at a minimum of 20%, but bidders were encouraged to come in at a higher rate, and only those offering a 51% tax rate could get the full 100 points allotted to that section.
Four other states have deals for a 51% revenue share — Arkansas, New Hampshire, New York, and Rhode Island. DraftKings in New Hampshire and Bally’s/IGT in Rhode Island have monopolies in exchange for the high revenue share.
The Department of Lottery in July approved “enhanced procedures” for wagering, meaning that the next step on the road to launch is reviewing the bids and determining which operators qualify. The enhanced procedures are an approach to rule-making used in Vermont that will allow the regulator to be nimble should issues arise or if quick changes must be made.
Vermont regulators are aiming to launch sports betting by the end of 2023, but they have not pointed to a specific date.
