Online sports betting is off to a strong start in Vermont. It was so good, that the state says the actual figures blew away all the projections that were made leading up to launch day and they are crediting tourists with boosting the final figures.
Let’s take a look at the numbers and see what the landscape looks like for top-rated online sportsbooks the Green Mountain State.
Betting Boom
Liquor and Lottery Commissioner Wendy Knight reveals nearly $20 million wagered in the first three weeks of legalized sports betting since the January 11th launch date. The average bet size for visitors to Vermont was over $37, which is more than twice the $18 average for residents of the state. The average overall bet hovered around $23.
Knight says it’s tough to estimate the state’s annual earnings because this reporting period aligned with the NFL playoffs, which draw significant betting attention.
“The timing helped because we launched during the NFL playoff season. But, (tourists) were really driving the activity. People all around New England like to come to Vermont during ski season, and I think that was reflected in the stats we saw for January,” she told Legal Sports Report.
Where Did the Tourists Come From?
As Vermont became the final state in New England to legalize sports betting, Knight noted that numerous Vermonters already possessed online accounts they had been using in neighboring states. Coupled with the influx of tourists from states like New Jersey, New York and Massachusetts now able to place bets in Vermont, this contributed to the jumpstart that the initial period of betting activity received.
During the first three weeks of Vermont sports betting, nearly 850,000 people placed bets, with over half of them being out-of-state bettors. Additionally, 53% of the opened sports betting accounts belonged to visitors. Out-of-state accounts totaled 35,582, while in-state accounts amounted to 31,275.
FanDuel, DraftKings and Fanatics were the three most popular betting sites used in January.
Projections Are Now Being Readjusted
With Vermont sports betting handle averaging almost a million dollars per day in its first 20 days, and tourists accounting for more than $7 million, or 36%, of total volume, the state is now revising its revenue projections.
“We revised our fiscal year 2024 to be $3 million,” Knight said. “What we saw with wagering activity in January, we’re certainly well on track to meet that. If we’ve made almost $1.2 million in the first three weeks, which is what we projected for the first six months, we’re going to do quite well.”
The fiscal year ends in Vermont on June 30th. Regulators are now anticipating that sports betting will yield over $8 million in tax revenue within the first 12 months.
Regulators Anticipated This Could Happen
The state originally anticipated receiving up to $7 million in new revenue during the first full year of operations from online sportsbook operation. They were also estimating between $15M-$18M annually as the Vermont market matures. It’s safe to say they’re going to get to that number.
As alarming as that sounds, the numbers aren’t surprising to everyone. Months before the launch, officials knew that Vermont would be an attractive market for sports wagering operators due to its abundance of vacation homeowners and robust tourism industry.
So, we’ll wait and see if the market continues to stay strong, now that football season is over.
Calculators
