Is crypto sports betting legal in Vermont?

What's legal

Governor Phil Scott signed Act 63 on June 14, 2023. It allows sports wagering through mobile platforms only, run by two to six operators that the Department of Liquor and Lottery selects by competitive bid. Three operators won licenses (DraftKings, FanDuel and Fanatics), and betting opened on January 11, 2024. Its 2025 budget presentation still describes three operators. Vermont has no casinos and no retail sportsbooks.

You must be 21. Operators must refuse bets from anyone physically outside Vermont, so geolocation checks run every time you bet. Games involving a Vermont college team are off the board, apart from tournament games, and so is any college or high school event played in Vermont. The Department runs a self-exclusion list and a player complaint form, but both cover licensed operators only.

Crypto and offshore sites

None of Vermont's three licensed operators is a crypto sportsbook. A site outside those three has no Vermont license, whatever it claims.

Under 31 V.S.A. section 1325, a company that takes sports bets without a Vermont permit faces a fine of up to $50,000 or six months in prison for a first violation, rising to $300,000 or two years for a third. That law targets operators. If an unlicensed site refuses to pay you, the Department's complaint process does not reach it.

What's changing

The Act allows up to six operators, so Vermont could add three more. The Department approved a revised set of sports wagering procedures on May 13, 2026, and they take effect October 1, 2026.

Tax note

Vermont counts gambling winnings as taxable income. The Act also makes wagering proceeds from bets made in Vermont taxable Vermont income for nonresidents.

Federal tax applies on top at your ordinary rate, and large payouts can bring a W-2G. Keep records of wins and losses. See the Woyale tax guides for a worked example, and ask a tax professional about your Vermont return.

Common questions