Last Thursday, Vermont made its debut in the lucrative world of mobile sports betting, formally entering the booming sector alongside other states. This strategic move was set in motion when Governor Phil Scott signed a bill in June 2023, unlocking the door for mobile sports betting. In a subsequent announcement in December, it was revealed that DraftKings, FanDuel, and Fanatics were chosen to spearhead the operations of the state’s sportsbooks.
Leading the charge in the state’s sports betting arena are heavyweights DraftKings, FanDuel, and Fanatics Sportsbook, handpicked by the Department of Liquor and Lottery. Over the first twelve hours of the debut, an incredible seven thousand people joined all three sportsbooks, placing an astounding fifteen thousand bets every hour.
High Hopes for the Industry
Projections estimate that legalized mobile betting will inject a minimum of $7 million in fresh state revenue this year, according to Commissioner Wendy Knight. However, she emphasizes the importance of responsible betting.
With Vermont joining the sports betting scene, DraftKings’ sportsbook is now open in 26 states, surpassing FanDuel’s 21 states. With the launch of its sportsbook in Vermont, Fanatics Sportsbook has expanded to ten states. DraftKings overtook FanDuel in market share, securing about 31% of online sports betting and casino revenue in the third quarter, while FanDuel slipped to 30%. Still, the operators are certainly going to make a killing from the expansion.
Shares of DraftKings surged more than 200% in 2023, and last year, FanDuel’s parent company, Flutter Entertainment, announced its intention to IPO on a U.S. stock market, proving the platforms’ financial success. As the sports betting business undergoes constant change, Vermont is well-positioned to establish its place in this expanding market and compete for a share of the multi-billion dollar income opportunity.
A Growing Trend
With Vermont’s legalization, the number of states and the District of Columbia that offer legalized sports betting currently stands at 29, as reported by the American Gaming Association. The industry’s rapid growth is expected to continue in 2024, with North Carolina preparing to provide mobile sportsbooks before the start of the NCAA basketball tournament in March.
Further fueling this trend, California, Georgia, Missouri, and Oklahoma are currently navigating ballot initiatives or legislative processes on the matter.
Nationwide, online sports betting revenue is anticipated to hit $9.65 billion in 2024, with projections soaring to over $15 billion by 2028, according to data from research firm Statista.