HomeNewsUncategorizedVermont’s First Year of Sports Betting: Wins for Players, Adjustments for the State

Vermont’s First Year of Sports Betting: Wins for Players, Adjustments for the State

Vermont’s first full year of legal sports betting has brought unexpected results, with bettors winning more money than anticipated, ultimately cutting into the state’s revenue.

Image: IMAGO / Depositphotos

Since the market launched in January 2024, Vermonters have wagered approximately $198 million, and an impressive 89% — about $176 million — has been returned to players as winnings.

Initially, state officials projected that Vermont would collect $7 million in tax revenue for the 2025 fiscal year, but that estimate has since been revised down to $6.1 million. The reason? The three VT sportsbooks operating in the state — DraftKings, FanDuel, and Fanatics — have been paying out more winnings than regulators originally expected.

“People are wagering — and they’re winning their bets,”

said Wendy Knight, Vermont’s Commissioner of Liquor and Lottery.

“Great for the players, right?”

Unexpected Impact on Economy

This trend, while beneficial for bettors, means the state is collecting less money from the industry. However, Knight pointed out that the money won by players doesn’t just disappear — it continues to flow through Vermont’s economy in different ways.

“They’re going to pay income tax on what they’ve won. They’re going to go out to dinner more. They’re going to take a vacation. They’re going to buy a new rug,”

Knight explained.

Rep. Matt Birong, chair of the House Government Operations Committee, joked about one possible impact of increased winnings:

“More chicken wings for everybody.”

Even though the state is bringing in less money than expected, officials believe that the overall economic benefit from Vermont sports betting could still be significant, particularly if players reinvest their winnings into local businesses and services.

Growth, Challenges, and Future Expansions

Despite missing initial revenue projections, Vermont’s sports betting market has shown strong growth. In December 2024, the state hit a new record with $24.4 million in handle, a 32% increase from November’s $18.4 million.

However, adjusted gross revenue for sportsbooks fell from $2.05 million in November to $1.6 million in December, reinforcing the trend of high player payouts.

Basketball, football, baseball, tennis, and soccer were the most popular sports among bettors, reflecting a diverse range of interests. The average wager stood at $22.83, and while Vermont residents placed the majority of bets — 78% of all wagers — out-of-state visitors contributed 22% to the total.

Looking ahead, Vermont officials are considering expanding digital gambling options through an iLottery platform. Similar to sports betting, iLottery would allow Vermonters to play traditional lottery games, such as Powerball and Mega Millions, through a mobile app or desktop platform.

“You basically have a traditional ticket you can play, or you could play on your phone,”

Knight said, likening the transition to the shift from in-person banking to online banking.

While Vermont fine-tunes its sports betting regulations and considers future gaming expansions, the state is also investing in responsible gambling initiatives.

In its first year, Vermont’s problem gambling program spent $35,000 of its allocated $250,000 budget. The Department of Mental Health launched VTGamblingHelp.org in July 2024, a website designed to provide resources for those struggling with gambling addiction.

“We started from the ground up,”

said Department of Mental Health Commissioner Emily Hawes, emphasizing that gambling-related harm often takes time to develop. The state has plans to ramp up its responsible gambling efforts, with a $500,000 budget allocated for the 2025 fiscal year.