Bidding for Sportsbook Licenses Laws & Regulations

Sportsbook Bidding Kicks off in Vermont

By Lisa Spencer Senior Editor Updated: 02 August 2023

Lisa Spencer Senior Editor

As a Senior Editor at Betting.US, Lisa Spencer is a valuable member of our expert team. With a Master’s degree in Applied Mathematics, Lisa is adept in gambling theory and analyzing odds. She contributes by writing online sportsbook reviews and finding competitive markets to help our readers make an informed choice.

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It has recently been announced that bidding for online sportsbooks had opened up in Vermont, as the state prepares to launch online sports betting in January next year. Regulators launched the bidding process to allow interested sportsbook operators to apply if they want to be part of the new up-and-coming online sports betting market in the state.

Regulators posted a Request for Proposal during last week, and this brings the state a step closer to enjoying the benefits of online sports betting.

Bids must be made by August 28th this year, and officials said that they hope to officially launch online sports betting on January 1st, 2024. This will be a great start to the new year for sports fans in Vermont, and it will be in time for a number of major sports events, although most of the NFL regular season will be missed. Importantly, betting will be available in time for the Super Bowl.

The sports betting law in Vermont was signed off in June by the state governor, and as part of the law, between two and six contracts will be awarded to online sportsbooks. This will be the only means of betting on sports in the state, as there are no physical casinos.

Bettors will be able to enjoy the ease and convenience of betting online once betting is officially launched, and the state can look forward to boosting income through sports betting taxes.

Leading Operators Expected to Bid

Now that the bidding process has officially started, there are a number of leading names in the industry that are expected to show their interest. These include FanDuel, DraftKings, BetMGM, and Caesars Sportsbook.

Vermont Lottery Commissioner Wendy Knight said:

I’m excited that we have these well-established — considering how new the industry is — operators that are interested in participation in Vermont.

There will be a competitive bidding process that is similar to that used to award other types of contracts in Vermont. With so few contracts to be awarded, competition for licenses is likely to be very stiff.

Scoring System to be Used to Help with Decisions

The process will be overseen by the Vermont Department of Liquor and Lottery, and a scoring system that considers a range of factors will be used to make key decisions.  

The document that has been released for bidders provides full details of the requirements for sportsbook operators who wish to make an application. It also explains that those who do receive a contract will have it for three years, and there will be an option to renew the contract for an additional two years.

There will also be a 20 percent revenue-sharing requirement and operators will have to pay a license fee of $550,000. Operators that agree to additional revenue sharing up to 50 percent will receive added points during scoring, which means a better chance of getting one of the coveted contracts.

The launch of online sports betting in the state will be good news for sports fans, and also for operators, as competition will be less stiff among successful applicants with only a handful of contracts being given out.