On Thursday, Jan. 11, online sports betting will be legal in Vermont, making it the last of all the New England states to allow this type of gambling.
Why do state officials think this is an important development and how is it actually going to work?
开云体育鈥檚 senior political correspondent Bob Kinzel joined Morning Edition host Jenn Jarecki to discuss the state's new sports wagering system. This interview was produced for the ear. We highly recommend listening to the audio. We鈥檝e also provided a transcript, which has been edited for length and clarity.
Jenn Jarecki: So Bob, Vermont is a little late to the game. We mentioned all other New England states allow sports betting. And, in fact, there are roughly 30 states across the country where it鈥檚 legal. So why is Vermont allowing this now?
Bob Kinzel: Well Jenn, , and that opened the door for states to set up their own systems. Vermont wanted to see how other states approached this issue and to learn from their experience.
Wendy Knight is Vermont鈥檚 commissioner of liquor and lottery 鈥� that鈥檚 the department that鈥檚 in charge of online sports betting. She says three national companies have now been selected to operate in Vermont 鈥� DraftKings, FanDuel, and Fanatics Sportsbook.
They will give the state roughly a third of their gross revenue. So, in this first half year of operation, the state will get around $3.5 million in new revenue, and this is expected to grow to around $18 million in new revenue in five years.
Commissioner Knight says there are several benefits to this new program:
Wendy Knight: And the reason isn鈥檛 just that we, the state, can collect much needed revenue, but it鈥檚 that you鈥檙e taking an activity that is occurring illegally right now, which doesn鈥檛 have consumer protections and doesn鈥檛 have safeguards, and you鈥檙e creating a regulatory environment for it, right? That creates a safe and enjoyable framework.
Bob Kinzel: You know, Jenn, in the old days, people would bet on the outcome of the game itself, but now a person can make bets during the game on a huge variety of outcomes. Things like:
How many three-point shots will a team make in the second quarter?
Which team will score next?
How many fumbles will a team make in a football game?
I mean, the possibilities are endless. And this has led to a barrage of TV ads during the games offering various 鈥渙utcome鈥� bets 鈥� they just pop up during the event itself. And this is really important, because it鈥檚 estimated that half 鈥� half 鈥� of all online sports betting takes place during the game itself.
Commissioner Knight says this situation creates an interactive experience for many people:
Wendy Knight: This is an activity that sports enthusiasts really enjoy. So it鈥檚 people that are really engaged with their teams. They like to watch sports. They like to play sports, and so they鈥檙e going to be more interested in online sports wagering than someone, for example, that has no interest in professional sports or doesn鈥檛 pay attention to sports at all.
Bob Kinzel: And Jenn, I should mention that you cannot bet on any Vermont college sports games unless they are playing in an NCAA tournament at the end of the year.
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Jenn Jarecki: I didn鈥檛 realize how much you could bet on during the game, Bob. Are state officials concerned that the proliferation of online sports betting is going to result in an increase in problem gambling in Vermont?
Bob Kinzel: It鈥檚 definitely a concern because there is research that shows that online betting is considerably more addictive than other forms of gambling.
Now, Commissioner Knight responds to this concern in several ways: She says the problem is not new. It鈥檚 already happening with the illegal market. And then, there鈥檚 the technology that鈥檚 involved.
Wendy Knight: We know that phones can be addictive. We know social media can be addictive. And so I think that鈥檚 one of the aspects that makes online sports wagering more addictive as opposed to going into a casino and playing slot machines, because of the nature of the vehicle by which you are playing.
Bob Kinzel: And Jenn, folks should also know that you have to be at least 21 to place an online bet. And, as a consumer protection feature, credit cards cannot be used under any circumstances.
We need to say, 鈥楤ut how can we limit the damage? How can we be aware of how it鈥檚 affecting ourselves and how we see the sports, and where can we get help?鈥�Gary Mitchell, addiction counselor
Jenn Jarecki: How is the state specifically addressing the issue of problem gambling? What kind of resources are being dedicated for these programs?
Bob Kinzel: Well, Jenn, Commissioner Knight says, for the first time, the state is specifically dedicating money for these online gambling and lottery gambling programs.
$250,000 will be allocated to the new sports betting program and another $250,000 for the existing lottery programs. But there are concerns that this isn鈥檛 going to be nearly enough money.
Gary Mitchell is a long-time addiction counselor in Hardwick, and he was speaking recently on Vermont Edition with host Mikaela LeFrak. He expressed his general support for the state鈥檚 efforts, but he said that more money is needed, because between 2% and 6% of all gamblers have a serious addiction problem.
Gary Mitchell: The gates are open and we need to say, 鈥極K, it鈥檚 not the sports betting we can stop, because it鈥檚 here.鈥� We need to say, 鈥楤ut how can we limit the damage? How can we be aware of how it鈥檚 affecting ourselves and how we see the sports, and where can we get help?鈥�
Bob Kinzel: Commissioner Knight says the state will review how things are going after the first year of operation and would consider increasing funds for these programs in future years if that鈥檚 what is needed.
Jenn Jarecki: Bob, are there concerns that with so much money being bet on sporting events across the country, that some corruption is going to take place?
Bob Kinzel: You know, Jenn, you鈥檇 think there would be. But this has also been a problem with the large amount of illegal gambling that has taken place for many many years.
There have been numerous college basketball scandals over the decades, and there鈥檚 the infamous .
Now, Gov. Phil Scott, who supports sports betting, says there鈥檚 little the state can do about this problem. It鈥檚 really up to the professional sports leagues to monitor this issue.
Phil Scott: We鈥檙e dependent on the organizations that oversee sports, because they don鈥檛 want to taint their image either. So we鈥檙e relying on them to make sure they play by the rules.
Bob Kinzel: You know, Jenn, it鈥檚 really interesting. There was a time when the sports leagues tried to distance themselves from all kinds of sports betting 鈥� they wouldn鈥檛 go near it! But not any longer. Now they embrace online sports betting.
One reason might be because they think it helps increase their viewership throughout the game. Because remember, 50% of all online bets are made during the game itself. So even if the game is a blowout, there are still many opportunities to make bets during the game, and viewers will stay watching the game.
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