HomeNewsUncategorizedVermont Reports Sports Betting Dip in May 2024

Vermont Reports Sports Betting Dip in May 2024

In May 2024, Vermont's sports betting market experienced a significant dip, reflecting the seasonal trends typically observed in the sports wagering landscape.

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The Vermont Department of Liquor and Lottery (DLL) reported a combined VT sports betting handle of $12.6 million, marking a 26.2% decline from April’s $17.1 million. This drop is indicative of the initial summer betting lull, a trend that is not unusual in the industry, as a majority of mainstream sports are on break during these months.

Monthly Trends and Revenue Analysis

The monthly handle’s decline from April to May was coupled with a corresponding decrease in revenue. May’s mobile sports betting revenue in Vermont fell by 38.6%, totaling $1.2 million, down from April’s $1.7 million. The tax collections followed suit, dropping 28.2% to $382,430 from the previous month’s $532,457.

Basketball remained the top sport for wagers in May, generating $4.1 million of the total handle. Baseball and tennis followed with $2.8 million and $1.4 million, respectively. This continued interest in basketball, despite its seasonal decline, underscores the sport’s strong foothold among Vermont bettors. Baseball’s relatively stable performance and the increasing interest in tennis highlight a diversified betting preference among residents.

Year-to-Date Comparison

Since the launch of regulated online wagering in January 2024, Vermont’s sports betting market has seen fluctuating fortunes. February marked the highest point, with a handle that was 40.5% higher than May’s figures. The gradual decline from the February peak through April to May shows the market’s ties to the seasonal sports calendar.

The Green Mountain State, which relies solely on VT sports betting apps for wagering alongside Tennessee and Wyoming, started strong with three major operators: FanDuel, DraftKings, and Fanatics Sportsbook. In the initial two months, these platforms generated a gross sports betting revenue of $6.8 million, resulting in a 16.4% hold rate. Adjusted gross revenue, after deductions for federal excise tax, voided wagers, and promotional bonuses, was $5.9 million, with $1.9 million contributing to state tax revenue.

Declining Bets and Bettors

The decline in handle and revenue in May was driven by fewer bets and bettors. The average wager dropped slightly to $22.75 from April’s $23.15, but the number of bets saw a sharp decrease. From approximately 992,000 tickets in March to 737,000 in April, and further down to 554,000 in May, the betting activity showed a consistent downward trend. Concurrently, the number of bettors decreased from 40,000 in April to 27,000 in May, with 9,000 of these coming from out of state.

Future Outlook

Vermont’s sports betting market faces the typical summer challenges with lower engagement, but the long-term prospects remain positive. The presence of established operators like FanDuel, DraftKings, and Fanatics Sportsbook provides a stable platform for growth once the major sports seasons resume. As the market matures, Vermont can anticipate increased activity during the NFL and NBA seasons, which traditionally drive higher betting volumes.

To sustain growth, the Vermont Department of Liquor and Lottery might consider strategies to enhance engagement during the slower months. This could involve targeted promotions, introducing new betting markets, or leveraging popular events to attract casual bettors. Additionally, expanding educational efforts about responsible betting and maintaining robust customer support can help retain the current user base while attracting new bettors.

While May’s figures reflect a seasonal downturn, Vermont’s sports betting market is poised for recovery and growth. The initial months have shown the market’s potential, and with strategic initiatives, Vermont can navigate the summer lull and capitalize on the busier sports seasons ahead.