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Posted on: July 20, 2023, 05:08h.
Last updated on: July 20, 2023, 05:08h.
Vermont regulators have opened the bidding process for online sportsbooks who want to set up shop in the state.
The Request for Proposal regulators posted Wednesday afternoon marks the latest step in establishing a legal sports betting program. Bids are due by Aug. 28, and officials hope to have the new operations in place by Jan. 1.
Vermont’s sports betting law, which the governor signed last month, calls for the state to award between two and six sportsbook contracts. Betting will be available exclusively online, as the state has no brick-and-mortar casinos.
Competitive bidding
Sportsbook licenses will be awarded through a competitive bidding process similar to that used to award various types of contracts in the state. The process is overseen by the Vermont Department of Liquor and Lottery, which has established a scoring system that takes into account a variety of factors such as an operator’s track record and revenue sharing.
At least four operators are expected to file bids, judging by those who have participated in the regulatory process up to this point. BetMGM, FanDuel, DraftKings and Caesars Sportsbook all submitted comments earlier this month on sports wagering procedures developed by the lottery commission.
“I’m excited that we have these well established — considering how new the industry is — operators that are interested in participation in Vermont,” Vermont Lottery Commissioner Wendy Knight told Casino.org in an interview.
Bid requirements
The 191-page RFP outlines the requirements for potential sportsbook operators and the detailed application process. Contracts will be awarded for three years with the option to renew for up to two more years.
Bids will be evaluated on a 1,000-point scale with scores based on a variety of technical and revenue categories, including a company’s financial stability, ethics, software quality, compliance and responsible gaming program.
Operators must pay a $550,000 operator fee and agree to a minimum 20% revenue sharing requirement. Additional points will be awarded to companies that agree to additional revenue sharing up to 50%.
Vermont is requesting detailed bids that include estimated revenue projections, details on the company’s background and other jurisdictions, its advertising plans and a responsible gaming program, among other requirements.
One of the goals of the sports betting program is generating as much money as possible for the state. As part of their bids, sportsbooks must submit a “plan for maximizing sustainable, long-term revenue for the State, including a detailed market analysis.”
Knight said she hopes to have a decision on which bids will be selected by the end of September. That will launch a negotiation process that likely will take another couple months to complete, in time to have betting in place by January.
That puts Vermont on a slower schedule than Kentucky, which also legalized sports betting this year and expects to have its program running by the start of the NFL season.
Still, bettors should still be able to get in on some postseason action.
“We’ll get it up and running in time for the Super Bowl,” Knight said.
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