Vermont’s venture into online sports betting marked a significant milestone in its gaming landscape.
Betting Activity Overview:
In the span of just six weeks following its inauguration on January 11, Vermont’s online sports betting market witnessed a flurry of activity, with a total handle reaching a commendable $41.1 million. The second month, February, saw this momentum sustained, albeit with a slight moderation, as the handle settled at $21.2 million.
Sport Preferences:
The breakdown of wager distribution unveils intriguing insights into Vermonters’ sports inclinations. Basketball emerged as the frontrunner, capturing nearly 45% of all wagers, amounting to $9.5 million. Tennis followed suit, commanding an 11% share of the betting volume. Football, which dominated the scene in January, experienced a decline, yet still raked in $1.7 million in wagers.
Revenue:
Despite the robust betting activity, the Vermont Department of Liquor and Lottery (DLL) reported a notable drop in gross revenue. This decline can be attributed to a significant decrease in the hold rate, plummeting by 10 points to 12% in February. Consequently, the revenue saw a substantial dip, totaling $2.5 million, in stark contrast to the $4.2 million recorded in January.
Tax Contributions and Projections:
Before the launch, Vermont had envisioned sports betting to be a lucrative revenue stream, with projections pegged at $7 million annually for the state coffers. However, the actual tax contributions from key players such as Fanatics Sportsbook, DraftKings, and FanDuel amounted to $731,874 in February. This tax, derived from an adjusted gross sports wagering revenue of $2.3 million, underscores the evolving nature of revenue projections in this dynamic industry.
As Vermont continues to navigate the intricacies of its burgeoning online sports betting market, it confronts both opportunities and challenges. The initial enthusiasm reflected in the substantial betting activity underscores the potential for growth. However, the fluctuating revenue figures highlight the need for stakeholders to adapt and refine strategies to optimize returns. With a keen eye on evolving consumer preferences and market dynamics, Vermont is poised to carve its niche in the ever-expanding realm of online sports betting.