Best online sportsbook Vermont is a short list by design, not by accident. Three apps are legal here — DraftKings, FanDuel, and Fanatics Sportsbook — out of a law that explicitly allows the state to license up to six. BetMGM and ESPN Bet both tried to be the fourth or fifth name on that list during the 2023 bidding round and neither made it in, which is the more interesting story than the ranking itself.
How Vermont Picked Three Operators Instead of Six
Act 63, the bill Governor Phil Scott signed June 14, 2023, didn't set a fixed number of sportsbooks the way a flat-licensing state does. It told the Department of Liquor and Lottery to negotiate contracts with “at least two but not more than six” operators, structured as a competitive bid rather than a standing application window. DraftKings, FanDuel, and Fanatics Sportsbook came out of that process with licenses. BetMGM and ESPN Bet applied and didn't — the department hasn't published a scoring breakdown explaining the gap, so the honest answer for a Vermont bettor is that those two brands simply aren't an option here, for reasons the state hasn't fully detailed.
Vermont sports betting, by the numbers
- Law signed: June 14, 2023 (Act 63 / H.127)
- Launch: January 11, 2024
- Regulator: Vermont Department of Liquor and Lottery
- Licensed operators: DraftKings, FanDuel, Fanatics Sportsbook (3 of a possible 6)
- Operators that applied but weren't licensed: BetMGM, ESPN Bet
- Per-operator fee: $550,000 initial, plus a revenue share landing around 31-33% of GGR
- Feb 2026 handle: ~$21.9 million wagered, ~$2.64 million GGR, $836,413 in state tax
Online-Only, Sportsbook-Only
Vermont's law covers one product: online and mobile sports wagering. There's no retail sportsbook to walk into, no licensed online casino, and no legal online poker. DraftKings, FanDuel, and Fanatics all run casino products elsewhere — Fanatics in Michigan, New Jersey, Pennsylvania, and West Virginia; DraftKings and FanDuel in a wider five- and six-state casino footprint — but none of that crosses over into their Vermont apps, because Act 63 never authorized it. A Vermont account opens a sportsbook, full stop.
Why the Tax Rate Matters to the Ranking
Vermont's bid-based revenue share is unusually steep — reporting on the finalized structure puts the effective rate at 31-33% of gross gaming revenue, well above the 20% ceiling operators had signaled as acceptable during 2023 Senate Finance hearings, and above the flat rate most states charge. That number doesn't change which app is best for a bettor, but it does help explain why only three operators bothered to clear Vermont's bar: a $550,000 up-front fee plus a revenue share in that range makes a tiny market like Vermont's a harder business case than a state ten times its population.
Vermont is one of the smallest regulated markets in the country by population, and the February 2026 numbers show it: roughly $21.9 million wagered across all three operators combined for the entire month, producing about $2.64 million in gross gaming revenue at a 12.07% hold. That's a rounding error next to a state like New Jersey or Michigan — small enough that the state's steep revenue-share rate likely matters more to whether a fourth operator ever applies than any marketing push from DraftKings or FanDuel does.
So Which One Should You Use?
DraftKings or FanDuel, picked the same way you'd pick between them in any licensed state — promo terms and app preference, since both run the same sportsbook-only product under the same Vermont rules. Fanatics Sportsbook is a legitimate third option built on real, inherited state licenses, not a consolation brand, but it runs behind the two leaders on scale and features here the way it does nationally. BetMGM and ESPN Bet are not legal alternatives in Vermont regardless of their footprint elsewhere — they bid for a license in 2023 and didn't get one. This is 21-and-over entertainment with a house edge built into every line, not a way to make money, and the Vermont Department of Liquor and Lottery lists problem-gambling resources, including the national 1-800-GAMBLER line, on its own sports wagering page.
The short list
- 1. DraftKings — Co-leader by national share, full sportsbook build
One of three operators the Department of Liquor and Lottery licensed after its 2023 competitive bid. DraftKings' national scale and promo depth carry over into Vermont's small market the same way they do in larger states — sportsbook only here, no casino product, since Act 63 didn't authorize one.
- 2. FanDuel — Co-leader, same license, same sportsbook-only limit
Licensed alongside DraftKings in the same 2023 bid round. FanDuel still holds the larger overall US market share nationally; in Vermont specifically the two run functionally equivalent sportsbook-only apps under the same Department of Liquor and Lottery rules.
- 3. Fanatics Sportsbook — The third license — real, but thinner than the leaders
Built on the state licenses Fanatics inherited when it acquired PointsBet's US sportsbook business in April 2024. A legitimate state-licensed operator, not a consolation prize, but running a smaller user base and narrower feature set in Vermont than DraftKings or FanDuel.
The honest verdict
DraftKings and FanDuel are the pick for the same reason they're the pick almost everywhere: deeper product, bigger promo budgets, and the market-share lead nationally carries over into a small state like Vermont where both run full-featured apps. Fanatics Sportsbook is the honest third option — a real, state-licensed operator built on PointsBet's old infrastructure, not an also-ran, but running a thinner feature set and smaller user base than the two leaders. What makes Vermont unusual isn't the ranking, it's the gate: the Department of Liquor and Lottery structured its 2023 procurement as a competitive bid with a $550,000 initial fee per operator and a revenue share that landed at roughly 31-33% of gross gaming revenue, among the steepest effective rates any state charges a sportsbook. BetMGM and ESPN Bet both submitted bids and both came away without a license — the department has never published a detailed scoring breakdown, but the result is a three-operator market in a state licensed for up to six. There is no casino, no poker, and no retail sportsbook here; Act 63 authorized online sports wagering only, so DraftKings, FanDuel, and Fanatics run sportsbook-only apps in Vermont even though all three also sell casino products in other states. None of this is a way to make money — it's 21-and-over entertainment with a house edge, and Vermont's own numbers prove the state takes a bigger cut of it than most.
Questions this list actually answers
What is the best online sportsbook in Vermont?
DraftKings and FanDuel, the same two national co-leaders that top most state rankings, followed by Fanatics Sportsbook as the real but smaller third option. Vermont only licensed three operators total — BetMGM and ESPN Bet both applied during the state's 2023 competitive bid and neither received a license, so they are not legal options in Vermont regardless of their footprint elsewhere.
Is online sports betting legal in Vermont?
Yes. Governor Phil Scott signed Act 63 (H.127) into law on June 14, 2023, and the market launched January 11, 2024. The Vermont Department of Liquor and Lottery regulates it and is authorized to license up to six operators, though a competitive bid process resulted in only three: DraftKings, FanDuel, and Fanatics Sportsbook.
Why isn't BetMGM available in Vermont?
BetMGM applied during Vermont's 2023 operator bid and did not come away with one of the three licenses the Department of Liquor and Lottery awarded, alongside ESPN Bet. The department has not published a detailed scoring breakdown explaining why those two bids fell short of DraftKings, FanDuel, and Fanatics while the state's own law permits licensing up to six operators.
Can I play online casino games in Vermont?
Not legally through any licensed app. Act 63 authorized online sports wagering only — no casino, no poker, no retail sportsbook. DraftKings, FanDuel, and Fanatics all sell casino products in other states, but their Vermont apps are sportsbook-only because that is the only product Vermont law licenses.
How much tax does Vermont collect from sports betting?
Vermont's 2023 bid process produced a revenue-share deal landing around 31-33% of gross gaming revenue, well above the 20% ceiling operators had signaled during Senate Finance hearings. In February 2026 alone, the state's three operators processed roughly $21.9 million in wagers for about $2.64 million in gross gaming revenue and $836,413 in tax collected.