Vermont Lawmakers Propose Ban on Online Sports Betting Just One Year After Its Legalization

Vermont lawmakers are making a curious move by pushing to ban online sports betting just a year after it was legalized. Despite the online sports betting industry performing relatively well, with $198.7 million in bets and $21.9 million in gross gaming revenue in its first year, three state representatives have introduced House Bill H.133, which aims to repeal the law legalizing online sports betting and the state lottery.

Rep. Troy Headrick, one of the bill’s advocates, raised concerns about the social costs of gambling, arguing that it disproportionately affects low-income citizens. However, this stance seems to clash with Vermont’s ongoing efforts to address problem gambling, such as the state’s launch of VTGamblingHelp.org, a website that provides resources for those struggling with gambling addiction.

While the bill’s push to eliminate online sports betting may seem like a well-meaning attempt to curb gambling's social effects, it could backfire. In fact, banning legal online sports betting could push gamblers towards unregulated crypto casinos, where there are no consumer safeguards and no state tax contributions. Given that nearly 30% of Vermont’s sports betting handle came from out-of-state players, it’s clear that Vermont has become an attractive hub for gamblers, and eliminating this regulated market could prompt them to turn to less secure, offshore sites.

Rather than banning online sports betting, lawmakers might be better off focusing on curbing gambling advertising, a measure that could reduce the influence of the industry while still allowing it to operate within a regulated framework. Unfortunately, this more nuanced approach seems to be overlooked, as lawmakers continue to focus on the easier but less effective option of a complete ban.

With the national trend moving toward legalizing sports betting, Vermont’s proposed ban is a puzzling move that could have far-reaching consequences. It may be more prudent for lawmakers to focus on refining existing regulations rather than reversing course on legalized sports betting. Time will tell whether they will follow this path, but it’s clear that a complete ban could lead to unintended consequences, including the rise of unregulated gambling alternatives.