Vermont Secures Record Seven Million in Revenue as Sports Betting Activity Grows in Second Year
Vermont officials confirmed a significant financial milestone on Friday as the state's sports betting industry generated over $7.2 million in tax revenue during its second year. The Department of Liquor and Lottery reported a 14 percent increase over the inaugural year figures, this growth stems from over $212 million in total wagers placed across mobile platforms.
Online Wagering Market Stabilizes After Initial Legalization Rollout
Vermont became the final New England state to sanction sports wagering when Governor Phil Scott signed legislation in June 2023. The marketplace launched officially in January 2024 with a digital-first strategy designed to capture revenue previously lost to neighboring jurisdictions like New York and New Hampshire, the state opted specifically for a mobile-only model without physical retail locations. While initial projections targeted $7 million for the first year, actual returns fell slightly short at $6.3 million due to favorable outcomes for bettors during the football season. This operational model utilizes a competitive bidding structure involving three major private operators rather than a flat taxation rate found in other regions.
State Revenue Surpasses Projections as Betting Volume Expands
The latest financial data reveals a robust expansion of the local gambling economy throughout 2025. Total wagers, known technically as the handle, climbed from $198.8 million in the first year to surpass $212 million in the second year, this increased volume resulted in a state revenue share of $7,252,813. The Vermont Department of Liquor and Lottery oversees these operations through distinct revenue-sharing agreements with authorized platforms including FanDuel, DraftKings, and Fanatics Sportsbook. Under these specific contracts, the state collects roughly one-third of the revenue generated by these companies rather than utilizing a standard flat tax rate. Officials attribute the financial upswing to deeper market penetration and sustained consumer interest in diverse betting options beyond standard athletic events, niche markets like table tennis have notably contributed to the volume. This growth indicates that the initial volatility observed during the 2024 launch phase has begun to level out into consistent performance across all three licensed operators.
Legislative Focus Shifts to Digital Lottery and Safety Measures
The demonstrated profitability of regulated sports wagering is actively influencing discussions regarding potential online lottery sales, lawmakers are currently reviewing bills to authorize iLottery systems using the existing regulatory framework as a blueprint. However, concerns regarding problem gambling remain prominent as funding allocated for mitigation services has seen delays in deployment. Advocacy groups continue to call for stricter advertising regulations to protect younger demographics from excessive exposure to gambling promotions.
Financial analysts predict the market will reach peak maturity within the next two years as betting habits stabilize. State regulators urge continued vigilance regarding responsible gaming practices as the digital footprint of Vermont's gambling sector expands.
