Vermont’s newly legalized sports betting market has exceeded financial expectations, generating $3.5 million in revenue for the state during its first six months of operation, according to a recent announcement by the Vermont Department of Liquor and Lottery.
This figure significantly outpaces the $2 million forecasted by the state’s fiscal analysts when the betting law was passed. From January to June 2024, both residents and visitors placed a combined $100 million in bets, with basketball and football drawing the most attention.
Despite the high betting activity, sports betting providers faced a narrow margin, as nearly 90% of the total wagers were returned to bettors, resulting in only $11 million in profits for the bookmakers.
The number of active bettors in Vermont during this period averaged around 39,000 each month, with over 4.65 million bets placed. A considerable portion of these users, approximately 38%, were from out of state, reflecting the appeal of Vermont’s betting offerings to visitors.
By July, this percentage increased to 43%, suggesting that gambling tourism could be a growing revenue stream for the state.
Interestingly, out-of-state bettors tended to wager more than local residents, with an average bet of $34.33 compared to $19.05 for Vermonters. Basketball emerged as the leading sport for betting during the first half of the year, accounting for 40% of all wagers.
Baseball, tennis, football, and hockey followed as other popular choices. Looking ahead, football is expected to dominate the second half of the year, coinciding with the start of the NFL 2024-25 season in September. Given football’s status as the most popular sport for betting in the U.S., Vermont is likely to see a substantial increase in wagering activity as the season progresses.
Despite the initial success, the state saw a decline in betting activity over the summer, with the monthly sports handle dipping below $10 million. This downturn was partly due to the seasonal lull in major sporting events, limiting betting options for users. Additionally, some bettors might be turning to alternative online platforms, including online and crypto casinos.
Vermont’s restrictive stance on gambling, with no brick-and-mortar casinos and a recent entry into the online sports betting market, means that it has room to grow. The state was the last in New England to introduce online sports betting and is one of the most regulated in the country.
The lack of local casino options continues to drive some residents across state lines to engage in gambling activities, particularly for slot and table games.
The success of the sports betting market in its first six months may prompt Vermont legislators to consider expanding the state’s gambling options, potentially including online casinos or crypto betting. The $1.5 million in unexpected revenue has been directed to the state’s general fund.
