Data shows Vermont raised $3.5 million from sports betting operators in first six months

Vermont collected $3.5 million in revenue from online sports betting operators over the first six months the market was legal statewide, according to data from the Vermont Department of Liquor and Lottery — slightly more than state fiscal analysts initially projected .

That represents the state’s cut of the roughly $11 million those companies made in Vermont over the same period of time, the data shows. In all, people either living in or visiting Vermont bet more than $100 million on sports from January to June. However, the data shows, operators paid out almost 90% of that money to winning players.

When state lawmakers legalized online sports betting in June 2023, the Legislature’s Joint Fiscal Office estimated that the market would bring in $2 million to state coffers over its first six months. But Wendy Knight, the commissioner of the liquor and lottery department, said officials soon determined that the market’s potential was larger.

“We’re pleased,” she said in an interview Friday. “We demonstrated that we were able to capture some revenue that, obviously, had gone to other states.”

Vermont was the last state in New England, and around the 30th in the country including Washington, D.C., to greenlight online sports wagering. Geolocation data provided to state lawmakers last year showed that people were crossing state lines out of Vermont to bet on sports, largely into neighboring New York, where online sports betting has been permitted since 2021 . Within Vermont, the data also showed that thousands of people were attempting to access sport betting platforms illegally.

Vermont entered into contracts last year with three gaming operators — DraftKings, FanDuel and Fanatics Sportsbook — and, as part of those agreements, now receives between 31 and 33% of each company’s revenue from their users in the state.

Knight expects that in the first full fiscal year the platforms are available in Vermont, which runs from July 2024 to June 2025, the state will bring in about $7 million.

Revenue from sports betting is largely allocated to the state’s general fund, though a portion is set aside for new state resources that officials hope will help curb problem gambling. Nearly 12,000 people in Vermont are estimated to have gambling problems, state officials have said previously.

In the 2024 fiscal year, which ended in July, the state put $250,000 from sports betting operators — plus $250,000 in revenue from the Vermont Lottery — into a dedicated fund for new problem gambling resources managed by the state’s Department of Mental Health.

Last month, the department launched a new website that includes information for people seeking assistance with gambling problems, behavioral warning signs for players to look out for and a live chat that’s staffed by peer support specialists.

“Problem gambling can deeply affect mental health, finances, and family dynamics,” Elliott McElroy, the mental health department’s responsible gaming program coordinator, said in a press release. “This website offers a space for individuals to find the resources and care they need to navigate problem gambling behavior.”

The state also offers a voluntary self-exclusion program from betting platforms. As of June, there were seven people who had opted to exclude themselves either for one year, five years or for a lifetime, according to Knight.

Over the first six months online sports betting was operational, Vermont saw an average of about 39,000 monthly active users, data shows. Collectively, they placed about 4.65 million total bets. Knight noted that the number of active users was highest when the platforms were new — with about 52,000 users recorded in January, figures show.

As of July, the number of active users was down to about 12,000, according to the data.

Vermont’s sports betting market also benefits significantly from out-of-state visitors who play while in the state, the liquor and lottery department data shows. Across those first six months, about 38% of active users in Vermont were from other states; in July, more than 43% were out-of-staters.

Knight said this trend makes sense in a state where the economy leans heavily on tourism. The sports betting market saw an uptick around April’s total solar eclipse, she said.

The data also shows that out-of-state users bet, on average, far more money on sports than in-state users did. Over the first six months that platforms were live, the average bet by Vermont residents was $19.05, while bets made by visitors, or second-home owners, averaged $34.33.

The state also collects data on which sports people are betting on.

Basketball was by far the most popular over the first half of 2024, with about 40% of all bets placed, the data shows. After that, it was baseball, tennis and football, all of which had around 9% of total bets. Hockey was fifth, making up about 5% of bets placed.

Knight noted, though, that the state anticipates a sharp increase in football betting when the 2024-25 NFL season gets underway next month. The 2023-24 NFL season was in its final stages, she said, when sports betting went live in Vermont earlier this year.

One surprise to state officials, the commissioner said, came in the department’s most recent trove of betting data, for July 2024. A new sport had creeped into the top five for most bets placed — table tennis.

“Like, who knew?” Knight said with a laugh.

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