Five operators submit bids following digital-only betting legalization in Vermont
Vermont’s recent game-changing move of legalization of digital-only betting has attracted major industry players like BetMGM and DraftKings, all of which are eager to make their mark in the potentially lucrative market.
According to available information, five major operators, viz. BetMGM, DraftKings, FanDuel, Fanatics Betting & Gaming, and PENN Entertainment, have already submitted their bids for sports betting permits in Vermont.
As part of the process that started in the month of July this year with the opening of Request for Proposals (RFPs), Vermont officials recently released its roster of potential licensees for digital-only betting business. Initially, operators had until 28th of August to submit their applications for the few licenses, but the deadline was later extended to 6th of September. While five major operators made their presence felt by submitting their applications, a notable absentee from the list is Caesars Sportsbook.
Boston-headquartered American daily fantasy sports (DFS) contest & sports betting company DraftKings is in the spotlight as this company is already has a presence in all the bordering states of Vermont. It may be noted here that the new state law allows operators to be on six digital platforms.
The operators will be judged and evaluated based on various criteria, using a comprehensive 1,000-point criteria system. The majority of these points, 800, will be assigned based on the gratification of "Technical Criteria," while the remaining 200 points will depend on the operator’s ability to meet the "Revenue Criteria."
Securing a license in the state will come with some intriguing conditions, including operator’s presence in at least three states of the nation, and demonstration of their commitment to a broader market. Once granted the license, operators will become bound by a three-year contract, during which they will be responsible for providing comprehensive full service.
Furthermore, the operators will be obligated to adhere to rigorous standards to ensure responsible gaming. In other words, the operators will have to incorporate various programs within their operations to ensure consumer safety. They will also be required to provide detailed integrity monitoring plans to ensure fair play and transparency.
Meanwhile, the government has also made it clear that it wants a bigger chunk of operators’ profit. While the new law sets a minimum tax rate of 20 per cent, operators are being encouraged to offer make bigger contributions. To achieve a perfect score of 100 points in this category, the operators would need to propose a tax rate of 51 per cent, akin to the rates seen in states like Arkansas, and New Hampshire.