In a surprising move, Vermont legislators have introduced a bill that could significantly alter the state’s gambling landscape. House Bill 133 (H.133), proposed on February 4, 2025, aims to repeal the state’s lottery and online sports betting laws, sparking a heated debate among lawmakers and the public.

Comprehensive Repeal of Gambling Laws Proposed

If enacted, H.133 would eliminate Chapter 14 (State Lottery) and Chapter 25 (Sports Wagering) from Title 31 of the Vermont Statutes. This would effectively make lottery and sports betting illegal under Chapter 51, Title 13 V.S.A., which governs gambling-related offenses. The bill, sponsored by Representatives Thomas Stevens, Troy Headrick, and Michael Mrowicki, is currently under review by the House Committee on Government Operations and Military Affairs.

Rep. Headrick has voiced concerns that online sports betting revenue disproportionately comes from low-income individuals, raising questions about economic equity and the ethical implications of gambling.

Vermont’s Sports Betting Market Under Scrutiny

Vermont legalized online sports betting in January 2024. In its inaugural year, the industry handled $198.7 million in bets and generated $21.9 million in gross gaming revenue. Interestingly, 30% of these wagers came from out-of-state bettors, highlighting Vermont’s appeal as a small but vibrant betting market.

However, the revenue fell slightly short of initial projections, leading some lawmakers to question whether the economic benefits outweigh the potential risks associated with gambling. This scrutiny comes at a time when the broader market is experiencing similar debates in other states.

Market Perspective: A Balancing Act

The proposed ban in Vermont reflects a broader national trend where states are reassessing the balance between gambling revenues and social costs. While the economic benefits of legalized gambling are clear, the potential for addiction and financial strain on vulnerable populations cannot be ignored.

For now, sports betting and the lottery remain legal in Vermont, but the debate is far from over. The bill faces several legislative hurdles, including committee reviews and floor votes, before it can reach Governor Phil Scott’s desk.

Conclusion

As the debate intensifies, Vermont finds itself at a crossroads. The outcome of H.133 will not only shape the future of gambling in the state but also set a precedent for other jurisdictions grappling with similar issues. Stay tuned for updates as this story develops.