Vermont approves DraftKings, Fanatics, and FanDuel for betting licenses

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Vermont regulators approved three of the five sports betting operator applicants seeking to take wagers in the state. The Vermont Department of Liquor and Lottery announced on Tuesday that FanDuel, Fanatics, and DraftKings Sportsbook are approved to launch sports betting platforms in the state.

That leaves BetMGM and ESPN Bet on the outside looking in. While Vermont law allowed the regulators to select up to five applicants and the group received five applications, they opted to approve just three.

“I first proposed Vermont legalize sports wagering several years ago, and it’s good to see it come to fruition,” said Gov. Phil Scott.  “Vermonters and visitors alike will soon be able to access a regulated sports wagering marketplace, which will come with important consumer protections and generate revenue for the State.”

Vermont regulators have also set forth Jan. 11, 2024 as the official launch date for online sports betting in the state, which is a pushback of ten days from the initial projection. The three operators are projected to generate roughly $7 million in tax revenue annually via a deal with the state that includes an operator fee and revenue share program.

The RFP for state operators mandated a minimum revenue share of at least 20% but operators could earn maximum points for a split that gave 51% to Vermont. The fee to operate in the state is $500,000 upfront with an annual fee of $366,666 each. That operator fee reduced with each operator approved in the state, which could have played a role in the decision to only greenlight three of the five applicants.

“We are excited to offer sports enthusiasts the ability to engage in sports wagering in Vermont with three of the industry’s top companies,” said Commissioner Wendy Knight.

The trio of operators in Vermont will match the same operators working in Connecticut, where Fanatics Sportsbook rolled out a soft launch via its partnership with the Connecticut Lottery just this week.