Vermont Online Gambling
Vermont legalized sports betting in January 2024. To celebrate this massive milestone, we decided to look at the history of Vermont gambling and the state of legal online gambling in the Green Mountain State. Spoilers: there isn’t much history. However, there have been some interesting developments recently.
This page will tell you about those developments, about legal sports betting in Vermont, and the future of Vermont online gambling.
Best Vermont Gambling Sites
Before we get into our full breakdown of the Vermont online gambling industry, here are some of the best Vermont gambling sites that you can play now.
Is Online Gambling Legal in Vermont?
Yes, online gambling is legal in Vermont. However, not all forms of online gambling are legal in the Green Mountain State. Let’s start with what is allowed: sports betting.
Governor Phil Scott signed H.127 into law on June 14, 2023, to legalize online sports betting in the state. The official online Vermont sports betting market went live six months later when DraftKings, FanDuel, and Fanatics Sportsbook launched on January 11, 2024. Retail sports betting isn’t supported in the state.
Other types of legal gambling in Vermont include social casinos, Daily Fantasy Sports (DFS), horse racing betting, charitable games, and lottery.
Vermont Gambling History
As we mentioned in the introduction, Vermont is not Nevada or New Jersey. The Green Mountain State has minimal gambling history. Like many states, Vermont went through a period of relative lawlessness before the religious revival in the mid-1800s. It is unclear exactly how big the Vermont gambling industry was, as few documents from that time mention gambling.
We have records of the state approving 40+ private lotteries between 1779 and 1804. The Vermont government also used lotteries to raise money for schools, militias, and other government services during this time. However, the state officially banned lotteries in 1894.
The ban ended in 1978, almost 15 years after Vermont’s neighbor New Hampshire became the first state to create its own lottery in 1964. Pari-mutuel horse racing betting was legalized in 1960, and lawmakers made some minor changes to the charitable gambling law in 1973. Besides that, there were few changes in the Vermont gambling law between 1894 and 1978.
As we discussed above, the biggest change since 1978 came in June 2023, when the state legalized sports betting.
While there is not much history to mention in Vermont, it is worth reviewing. Here are some of the state’s significant milestones:
1779: Vermont legalizes and formalizes lotteries to help raise money for the Revolutionary War effort. The first lottery raised $30,000 for the war fund.
1826: Governor Ezra Butler decries Vermont lotteries, calling them a threat to “the principles of morality in Vermont.”
1894: Vermont legislature finally criminalizes lotteries, decades after many other New England states.
1960: Pari-mutuel horse racing betting is legalized in Vermont and continues to be legal to this day.
1973: Vermont amends its criminal code (13 V.S.A. Section 2143) to legalize charitable gambling.
1977: Following Vermont voters’ approval of a referendum to create a state lottery in 1976, the state legislature passed Public Act No. 82 to officially create the Vermont Lottery. The Vermont Lottery first sold games to the public in 1978.
1992: The Green Mountain Race Track closes down, leaving nowhere to bet on horses in Vermont.
2017: Vermont passes Bill S.136 to legalize DFS.
2023: Vermont Governor Phil Scott signs H.127 into law, legalizing sports betting.
Legal Gambling Options in Vermont
As you can tell from the timeline above, the movement for more legal gambling options in Vermont is picking up steam. There’s still a way to go, as Vermont is one of the more restrictive states for gambling. Here is how things currently stand:
| Type of Gambling | Legal? | When Legalized? |
| Online Casinos | ❌ | N/A |
| Land-Based Casinos | ❌ | N/A |
| Online Poker | ❌ | N/A |
| Land-Based Poker | ❌ | N/A |
| Online Sports Betting | ✅ | 2023 |
| Retail Sports Betting | ❌ | N/A |
| Daily Fantasy Sports | ✅ | 2017 |
| Horse Racing | ✅ | 1992 |
| Lottery | ✅ | 1978 |
| Charitable Gambling | ✅ | 1973 |
Sports Betting
Vermont became the 38th state to legalize sports betting when Governor Phil Scott signed H.127 into law on June 14, 2023. Sports betting was not available immediately while the state’s regulator, the Vermont Department of Liquor and Lottery, established a safe environment for launching sportsbooks.
Bettors had to wait almost six months before DraftKings, FanDuel, and Fanatics Sportsbook went live in the state on January 11, 2024. These are the only options in the state, but that could change relatively soon. Vermont sports betting law allows for up to six online sportsbooks to be in the state.
The law does not allow for in-person sports betting. This makes Vermont one of just a handful of states that allow online betting but not retail wagers, such as Tennessee.
Online Casino
Online casinos are illegal in Vermont. Unlike its sports betting law, the Vermont online casino ban is not that unusual. Online casinos are currently only legal in seven states (CT, DE, MI, NJ, PA, RI, and WV).
While there is movement in other states to join the list of legal online casino states, nothing is happening in Vermont. The Green Mountain State has historically opposed casino gambling, not having any land-based casinos, and continues to do so today.
Poker
Like online casinos, online poker is not legal in Vermont. In-person is a little more complicated. Strictly speaking, hosting poker games is illegal in the Green Mountain State. However, the charitable gambling exception in Vermont’s criminal code (13 V.S.A. Section 2143) allows registered federal charities to host casino games, such as bingo and poker.
Even with this exception, in-person poker is not very popular in Vermont. New Hampshire has far more charitable casinos and poker room options, so many Vermont residents prefer to take the short trip over the border or a longer hall north into Canada or south to Atlantic City.
Daily Fantasy Sports
Vermont has not embraced many forms of gambling, but DFS is one notable exception. The state was one of the first in the country to address the issue of DFS head-on in 2017 when it unequivocally stated in its law that fantasy sports were a game of skill and not of chance.
This meant that even if you have to buy into a fantasy competition, it is not gambling and, therefore, not illegal under the Professional and Amateur Sports Protection Act of 1992 (PASPA).
The US Supreme Court struck down PASPA in 2018, and Vermont legalized sports betting in 2023, but the original 2017 Vermont DFS law is still in place. DFS is legal in Vermont. Almost all types of DFS competitions are allowed, but there are some restrictions on DFS comps that are too similar to sports betting, such as parlay competitions.
Lottery
While Vermont led the way on DFS, the state was a latecomer to the lottery. This was true in the 1700s when the state launched its first lottery nearly 50 years after Rhode Island introduced the first lottery in US history. It was also true in the 20th century.
The Vermont Lottery was established in 1978, 14 years after New Hampshire became the first state to establish a state lottery. Vermont’s rollout of games was similarly slow after the lottery got started.
Today, the Vermont Lottery has a huge games library and is arguably the most popular way to gamble in the state. In 2023, lottery ticket sales generated nearly $160 million in revenue for Vermont.
Retail Sportsbooks
There are no retail sportsbooks in Vermont. The Vermont gambling law actually says that in-person sports betting is illegal. Politicians have given many reasons why the state chose to go with online-only sports betting.
The most compelling reason is infrastructure since regulators felt it would be hard to pick where to approve an in-person sportsbook. Most US states allow retail sportsbooks to operate at land-based casinos, but VT has no casinos.
Land-Based Casinos
Similarly to retail sportsbooks, there are no land-based casinos in Vermont. This is because of the state’s ban on “professional gambling.” According to the Office of the Vermont Attorney General, “only nonprofit and fraternal organizations” are allowed to “operate games of chance.”
The agency says this is the only way to “ensure that the proceeds from the games provide direct support to charitable, religious, educational, or civic undertakings.”
Sweepstakes Casinos
While Vermont takes its bans on casinos and most forms of online gambling very seriously, sweepstakes casinos are legal in Vermont. As long as the site allows you to play without having to make a deposit, it is not a casino under Vermont gambling law, and it is legal.
How are Gambling Sites Regulated in Vermont?
All online gambling in Vermont is regulated by the Vermont Department of Liquor and Lottery and overseen by the state’s Attorney General’s office. The Vermont Department of Liquor and Lottery issues licenses, makes rules, and governs the day-to-day operations of Vermont iGaming operators. Vermont’s legislature has allotted up to six online sports betting licenses for the Department of Liquor and Lottery to issue. Three have been issued so far.
Vermont’s Attorney General assists the Department of Liquor and Lottery in ensuring that Vermont betting sites follow state law. Both agencies investigate potential violations. If a Vermont gambling site does violate the law, the Attorney General’s office will prosecute.
Responsible Gambling in Vermont
The Vermont Department of Liquor and Lottery’s most prominent role is to ensure that Vermont’s gaming operators protect players. Ensuring responsible gambling is a large part of that.
Vermont’s Department of Mental Health is a dedicated problem gambling center where you can find help. The Department of Liquor and Lottery also has resources available on its website. One of those resources is a self-exclusion list where you can ask to be permanently banned from Vermont gambling sites and sportsbooks. In addition to state resources, these national organizations are also available in Vermont:
FAQs
Is online gambling legal in Vermont?
Yes and no. Some forms of online gambling are legal in Vermont, and others are not. You can bet on sports online in Vermont, play DFS, bet on horse racing, and play social casino games. However, you cannot play at traditional online casino sites.
Can I bet on sports in Vermont?
Yes! Anyone 21 years old or older can legally bet on sports in Vermont. The state legalized sports betting in June 2023. The Vermont sports betting market officially opened in January 2024 when DraftKings, FanDuel, and Fanatics Sportsbook went live in the Green Mountain State.
Does Vermont have any online casinos?
No. Both online and in-person casinos are illegal in Vermont. If you want to play casino games online in Vermont, your best bet is playing at sweepstakes casinos, which are legal in Vermont.
Is DFS legal in Vermont?
Yes! While the legislature took its time legalizing Vermont sports betting, the government was very proactive for fantasy sports. Vermont was one of the first states to legalize DFS formally when it codified fantasy sports as a game of skill and not luck (like gambling) into its state law in 2017.
Are Vermont online gambling sites safe?
Yes, all legal Vermont online gambling sites are very safe. Vermont has taken a slow approach to legalizing online gambling, so the Vermont Department of Liquor and Lottery is very selective on which sites it approves.
Do I have to pay taxes on gambling winnings in Vermont?
Yes, you do. Vermont has some of the highest taxes on gambling winnings. Sports bettors must pay a 24% tax on all winnings as a part of their federal income taxes. Vermont has an additional 6% tax on winnings for VT residents. If you are a non-VT resident who wins while in the state, you must pay a 7.25% tax.
