Vermont Lawmakers Push to Ban Online Sports Betting Just One Year After Legalization

Just a year after Vermont launched online sports betting, three state lawmakers are taking steps to bring down the entire industry. House Representatives Thomas Stevens (D), Troy Headrick (I), and Michael Mrowicki (D) have introduced House Bill H.133, aiming to repeal the law legalizing online sports betting and the state lottery.

Online Sports Betting Is Performing Relatively Well

The bill, submitted on 4 February, has been referred to the House Committee on Government Operations and Military Affairs. This repeal proposal is surprising, given none of the bill’s chief advocates have been vocal critics of online sports betting. The sole lawmaker to make a public statement, Rep. Troy Headrick, expressed concern about the social costs of gambling, arguing it disproportionally affected low-income citizens.

Headrick’s claims, however, contrast with Vermont’s ongoing efforts to address problem gambling. In July 2024, the Vermont Department of Mental Health (DMH) launched VTGamblingHelp.org, a website dedicated to assisting Vermonters struggling with gambling disorders. The platform provides resources, counseling, and self-exclusion, as state statistics previously indicated that 11,600 Vermonters struggle with gambling harm.

Vermont was the last New England state to legalize online sports betting, launching its regulated market in January 2024. Despite concerns, the industry outperformed expectations in its first year, recording a total handle of $198.7 million and gross gaming revenue of $21.9 million. The $6.3 million tax contribution was slightly below expectations but still constituted a considerable financial boon to the state.

Walking Back on Gambling Legalization Is an Odd Move

With Vermont’s economy facing budgetary troubles, some lawmakers question whether it’s prudent to eliminate a new and growing revenue stream. Banning legal sportsbooks could push gamblers back to illegal, offshore sites, eliminating consumer safeguards and state tax contributions. Interestingly, nearly 30% of Vermont’s sports betting handle came from out-of-state players, reversing the trend of Vermonters leaving the state to gamble.

The proposed ban comes at an unusual time, as several US states like Minnesota and Oklahoma are moving to legalize sports betting to curb illegal markets and bolster tax revenues. These efforts align with broader national trends toward gambling legalization, although relations with tribal operators and other local considerations often present unique challenges.

Given these economic realities and nationwide trends, House Bill H.133 faces an uphill battle. Most industry experts expect Vermont’s legislature to prioritize refinements to existing regulations over a full online gambling repeal. However, only time will tell whether lawmakers decide to walk away from legal sports betting and the implications such a decision would have on Vermont and other US states.