Vermont launched mobile sports betting on January 11th of this year and the data is revealing a substantial boost from a source that was not considered when revenue projections were submitted – tourism!
Welcome to Vermont
In-state residents bet an average of $18 per wager in January but those visiting Vermont proved to have a larger gambling appetite with an average bet of $37 at the local online sportsbooks, more than double that of those who call the Green Mountain State home. Moreover, 40% of the 52,431 active bettors in January were from out of state.
Vermont Department of Liquor and Lottery commissioner, Wendy Knight, spoke on the topic of tourists boosting the handle of $19.9 million over the 20 remaining days in January after the launch on January 11th, “That was not something we anticipated. 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.”
Unplanned
And of the nearly $20 million sports betting handle in a truncated January, tourists accounted for $7.1 million or over 36% of the total volume. It was a demographic that was not contemplated when officials forecasted projected handles and revenues in the last New England state to legalize sports betting.
It didn’t hurt that the launch occurred during ski season in a state known for its powdery trails and scenic views. “We are seeing a really strong start to sports betting in Vermont,” Knight said. “The first weekend we launched, in Killington, which has the ski resort, had the third highest activity for sports wagering on (Martin Luther King, Jr.) weekend, and less than 4% of those were new users. So, these were existing Vermonters and players from out of state that could now play legally here.”
Vermont legalizing online sports betting in the middle of college basketball season was GREAT timing.
— KSJ (@KStratJ) January 17, 2024
Revising the Forecast
Now that tourism in Vermont has proven to be a massive boost to the three mobile sportsbooks operating in the state – FanDuel, DraftKings, and Fanatics – it is only natural that those tasked with regulating the industry would be eagerly looking forward to leaf peepers in the fall and even one-off events like this coming April 8th when there will be plenty of ideal locations to view the total solar eclipse.
“The Vermont Department of Tourism and Marketing is doing a big promotion around (the total solar eclipse),” Commissioner Knight said. “This is a big deal, and many hotels are already booked. I will be interested to see if those tourists also engage in online sports wagering. We will be monitoring this out-of-state activity throughout the year.”
The Numbers
The sportsbooks’ adjusted gross revenues over the 20 days in which mobile sports betting was live in January produced $3.6 million, generating $1.1 million for the state’s tax coffers. Anticipated sports betting tax receipts for the first 12 months in Vermont is $8 million but those figures may need to be revised.
“We revised our fiscal year 2024 (ends June 30th) 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.”
Vermont is not the only state benefiting from the revenue that stems from sports betting. In 2023, the combined handle in the nation surpassed the $1 billion mark.
