Several state representatives from Vermont have proposed a new bill that would effectively ban lottery games and sports betting in the state. Vermont legalized sports betting in 2024, and if the bill is passed, it would be the first state to repeal and revoke it.

In a move that could make Vermont the first state in the post-PASPA era to roll back legalized gaming, a trio of state representatives has introduced a bill seeking to repeal both sports betting and the state lottery. If successful, the bill would effectively end all forms of legal gambling in Vermont.

Bill seeks to end legal gaming in Vermont

House Bill H.133, sponsored by Representative Tom Stevens and co-sponsored by RepresentativesTroy Headrick and Michael Mrowicki, aims to overturn Vermont’s current gaming laws. The bill challenges the state's recent adoption of mobile sports betting, which was legalized in 2023 and officially launched in 2024.

Rep. Headrick, a vocal opponent of state-sanctioned gaming, explained his support for the bill, calling gambling "regressive taxation" that disproportionately impacts low-income individuals. "State-sanctioned gaming functions as a camouflaged form of regressive taxation. It disproportionately harms low-income and working families who are forced into desperate financial decisions," Headrick told.

A regressive tax is one that takes a larger percentage of income from lower-income individuals compared to those who are wealthier. Unlike a flat tax, like a sales tax, which applies evenly to all consumers, or a progressive tax, such as income tax, which increases for higher earners, gambling revenue is often generated disproportionately from those with the least financial security.

A first in the post-PASPA era?

Since the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018, opening the door for states to regulate sports betting, more than three dozen states have legalized some form of it. Vermont joined the ranks in 2023, making it one of the more recent adopters of mobile sports betting.

If passed, H.133 would make Vermont the first state since PASPA's repeal to backtrack on legal sports betting. The move would also be unprecedented in terms of state-run lotteries, as 45 states currently operate them, with no known instances of repeal in recent history. The media reached out to Rep. Stevens and Rep. Mrowicki for comment on the bill but did not receive an immediate response.

Concerns over the impact on low-income residents

Research has consistently shown that gambling behavior is prevalent among both the highest- and lowest-income groups, with lower-income individuals often spending a higher proportion of their earnings on lottery tickets and sports betting.

Headrick hopes Vermont's bill will prompt other lawmakers to scrutinize the effects of gaming on economically vulnerable populations. "I would hope that just-minded legislators in other states take a hard look at how these predatory contracts extract wealth from their most vulnerable residents," he said. "The losses are predictable, and the harm is measurable. No state should rely on a funding mechanism that depends on its people losing."

Challenging path to passage

Despite the strong stance taken by Headrick and his co-sponsors, the bill faces an uphill battle. To become state law, it must pass votes in both the Vermont House and Senate before reaching Governor Phil Scott's desk for approval.

Headrick himself is not optimistic about the bill's chances. He pointed to what he sees as the governor's reluctance to support measures aimed at easing financial burdens on low-income households. "I won't pretend to know how the Governor thinks, but given his refusal to consider progressive tax reforms and his reliance on austerity measures that cut deepest into the lives of the most vulnerable, I doubt he'd be eager to give up the financial buffer that state-sanctioned gaming provides," Headrick stated.

While the bill's prospects remain uncertain, its introduction has reignited the debate over the role of state-run gambling as a revenue source. If Vermont were to repeal sports betting and the lottery, it would set a precedent in the national conversation surrounding gaming regulation and its social impacts.