Three Vermont state representatives have put forward legislation that would repeal legalized gaming in the State, further reducing the prospects of Vermont offering crypto betting.
Reps Thomas Stevens, Troy Headrick, and Michael Mrowicki have introduced H. 133. The act is titled “An act relating to repealing the statutes that authorize the State Lottery and sports wagering.” it has been referred to the House Committee on Government Operations and Military Affairs.
The text in the suggested repeal also adds that should it be voted through, betting and lottery would be subject to criminal charges. It reads: “Ensure that any person offering a lottery or sports wagering is subject to the criminal provisions of V.S.A chapter 51 (gambling and lotteries).”
Vermont legalized online sports betting in January 2024. For the calendar year, it took $198.7 million in wagers, reporting a total gross gaming revenue of $21.9 million. The state’s legislation allows for up to six operators, and currently, DraftKings, FanDuel, and Fanatics are operational, with no cryptocurrency gambling companies yet licensed.
The Green Mountain State is one of the smaller states that operates legalized sports betting. Cryptocurrency has not been discussed in great depth in the Vermont House or Senate.
Vermont’s Regulatory Caution on Crypto and Digital Assets
In 2023, the Vermont Department of Financial Regulation warned about crypto-related scams happening through social media and messaging applications.
An excerpt from the department’s statement reads: “Cryptocurrencies are not functional equivalents to traditional banking, securities, or insurance investment products. There is no lender of last resort, little to no financial disclosures, and usually no insurance protection for losses arising from market fluctuations, theft, or scams.”
When referencing scams, it cited the North American Securities Administrators Association, which ranked cryptocurrency and digital assets among ‘top investor threats’ and urged prospective investors to exercise extreme caution. “The Department of Financial Regulation urges Vermont investors to be vigilant whenever using crypto or evaluating crypto as an investment,” it said.
Vermont’s Crackdown on Crypto Firms Operating Without Registration
In February 2024, the Department of Financial Regulation entered into an inter-state settlement agreement with TradeStation Crypto, Inc., after investigating the company’s crypto interest-earning program.
The task force determined that from August 2020 to 2022, TradeStation offered and promoted its crypto interest-earning program in Vermont ‘at large’ and engaged in the ‘unregistered offer and sale of securities.’ Each state was awarded $29,411.76, totaling a $1.5 million fine for the company.
The DFR said: “This Order reflects DFR’s core mission to protect the Vermont investor. Crypto-related businesses must comply with Vermont law when engaging in the offer and sale of securities.”
If Vermont lawmakers make the unlikely decision to repeal the law legalizing gaming in the state, it would become the first state in the United States to do so.
President Trump’s new administration wants to cut spending and de-regulate the cryptocurrency space. As states look to start generating as much revenue as possible, the contemplation of legalizing crypto sports betting could become far more appealing.
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