When you sign-up through links on our site, we may earn an affiliate commission. Learn more >

Vermont Receives Five Bids for Sports Betting Licenses

Written by: Michael Savio
Published September 19, 2023
6 min read
Vermont Sports Betting Licenses

After receiving five bids for operator licenses, Vermont took a step closer to launching its online sports betting market last week. The bids were received in response to a Request for Proposal sent out by the Vermont Department of Liquor and Lottery (VDLL), the top regulator for sports betting in Green Mountain State. DraftKings, FanDuel, BetMGM, Fanatics, and ESPN Bet all submitted bids for the state’s six licenses. The small market has prevented smaller operators from getting involved, especially now that three of the country’s top four sportsbooks will likely operate there.

The VDLL will now review the bids to determine if they will award each a license. They will be rating the proposals on a scale of 0-1,000, with much of the rating depending on how much revenue the operator is willing to share. While Vermont is allowed to have up to six sports betting operators, the law requires a minimum of two. That allows the state to keep these five operators bidding against each other, maximizing their tax revenue.

All approved operators will be taxed at 20% and pay $550,000 for a three-year license to operate in the state. DraftKings, FanDuel, BetMGM, and Fanatics have been operating in several other states, meaning they should not have a problem getting approval. While ESPN Bet is new, parent company Penn Interactive has run several iGaming platforms, including Barstool Sportsbook.

Smaller Operators Being Blocked Out of Smaller Markets

The most telling part of the announcement of the bids is that all five are major brands. It represents a trend we have seen nationwide, with smaller sportsbooks struggling to capture enough market share to break even. While states like Vermont should be perfect for local or more niche operators, it is clear that no market is too small for the power players. 

In the five years since the US Supreme Court opened the door for legal sports betting, FanDuel and DraftKings combine to own 70% of the market share nationally. BetMGM is third at 11.1%, which doesn’t leave much for the dozens of other operators to capture. Barring an issue with the VDLL, it seems this trend will be set to continue in Vermont. 

Image for Michael Savio

AUTHOR

Michael Savio

477 Articles

Michael is an avid sports fan and a veteran bettor from Milwaukee. He learned the trade from his grandfather in Las Vegas as a kid and has turned that into a successful career. He cheers for all Wisconsin pro teams along with his Alma Mater Arizona State. He specializes in baseball betting, but has experience in football, basketball, and hockey as well. When he isn’t pouring over stats, he’s spending time with his two young children.

More info on Michael Savio
We've been featured on:
espn logo
reuters logo
cbs-news logo
forbes logo
entrepreneur logo
entrepreneur logo
We only list licensed sportsbooks
WorldSportsNetwork
WorldSportsNetwork
WorldSportsNetwork
WorldSportsNetwork

© Rebel Penguin ApS 2024 (a subsidiary of Gaming Innovation Group Inc.)

We support responsible gambling. 21+ Only. Gambling problem? Call 1-800-Gambler.

WSN.com is run by iGaming Cloud Inc (a Gaming Innovation Group Subsidiary) and is registered with the New Jersey Division of Gaming Enforcement (DGE) under affiliate vendor ID 89744, with the Indiana Gaming Commission (IGC) under certificate of registration number SWR-000148, approved by the Pennsylvania Gaming Control Board as a gaming service provider, under certificate registration number 117656-1, possesses a Vendor Minor sports betting license from the Colorado Limited Gaming Control Commission (account number 94414163), granted a vendor registration number VR007603-20-001 by the Michigan Gaming Control Board, an interim Sports Wagering Supplier license, under license number SWS 066, issued by the West Virginia Lottery Commission, a sports betting vendor registration, under registration number #100400, issued by the Director of Gaming Licensing and Investigations of the Virginia Lottery to operate in the State of Virginia, and a Vendor Registration issued by the Sports Wagering Committee of the Tennessee Education Lottery Corporation.

Advertising disclosure: WSN contains links to online retailers on its website. When people click on our affiliate links and make purchases, WSN earns a commission from our partners, including ESPN and various sportsbooks.