Vermont Sets Sports Betting Handle Record in December but Faces Revenue Drop
December was a record-breaking month for sports betting in Vermont, with players wagering $24.4 million, a 32% increase compared to November’s $18.4 million. However, while the handle hit new heights, sportsbook revenues dipped, closing out the month at $1.6 million, down from $2.05 million the previous month.
A Winning Month for Bettors
The revenue decline can be traced back to a low hold rate of 6.7%, the percentage of total bets that sportsbooks kept after payouts. Bettors walked away with larger-than-usual winnings in December, thanks to favorable outcomes in key sporting events.
This was a noticeable drop from November’s 10.7% hold rate and even October’s 7.1%, showing just how successful players were during the final month of the year.
Why Revenues Fell Short
Two main factors contributed to the revenue dip in December:
- Success of NFL and College Basketball Favorites: Bettors cashed in on favorable results in both leagues, leaving sportsbooks with lower profits.
- Parlay Performance: While parlays usually provide higher margins for operators, December didn’t go as planned. Bettors managed to hit big wins even on these high-risk wagers, further cutting into sportsbook revenues.
What Sports Drove December’s Action?
The record handle reflected strong player interest across several popular sports, with football leading the way at $9.7 million in wagers. Other highlights included:
- Basketball: Over $5.7 million in bets.
- Soccer: $1.3 million in wagers.
- Table Tennis: A surprising $633,653, showing the niche appeal of this fast-paced game.
The NFL season and college basketball tournaments clearly played a big role in boosting the overall betting activity for the month.
Year-End Totals Show Growth with Challenges
Despite the December dip, Vermont’s sports betting market ended 2024 on a high note, with $198 million in total wagers for the year.
Still, the lower revenues in December meant the state fell short of its tax revenue goals. The results highlight how fluctuations in hold rates can significantly impact both operators and state revenues.
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