Vermont legalized mobile sports betting under [Act 63 of 2023](https://legislature.vermont.gov/bill/status/2024/H.127) and launched the regulated market in January 2024. Unusually, the Vermont Department of Liquor and Lottery awarded only three commercial mobile sportsbook licenses — DraftKings, FanDuel and Fanatics Sportsbook. No other operators (BetMGM, Caesars, ESPN BET) hold VT licenses. With ~650K population, VT is the smallest state to operate a multi-operator mobile sportsbook market, and the three-operator structure functions as a tight oligopoly with limited promo competition.
For VT residents, this means CFTC-regulated prediction markets meaningfully expand competitive choice beyond the DK/FD/Fanatics oligopoly. Kalshi, Polymarket US, Robinhood, OG.com and others operate freely in VT. The only platforms geofenced are DK Predictions, FD Predicts and Fanatics Markets — all three because their parent companies hold VT sportsbook licenses they need to protect.
Vermont Prediction Market Timeline 2025–2026
- June 2023 — VT Legislature passes Act 63 legalizing mobile sports betting.
- January 2024 — Mobile sports betting goes live with DK, FD, Fanatics. State tax rate varies by operator (20–33%).
- March 2025 — Kalshi launches sports event contracts. VT residents have immediate access.
- November 2025 — VT AG Charity Clark declines to join AG Campbell's multi-state coalition.
- April 2026 — All CFTC-regulated platforms continue to operate in VT. DK Predictions, FD Predicts, Fanatics Markets remain voluntarily geofenced.
What VT Residents Can Trade Right Now
- Politics, macro, crypto, climate, entertainment, weather: Fully available on Kalshi, Robinhood, Polymarket US, OG.com, Sleeper, Novig, Chalkboard, Rebet.
- Sports event contracts: Available on Kalshi, Robinhood, Polymarket, OG.com, Novig and Chalkboard. Geofenced by DK Predictions, FD Predicts, Fanatics Markets.
VT-specific market depth is strongest on Boston-area teams (Patriots, Red Sox, Celtics, Bruins) and University of Vermont Catamounts (NCAA basketball and ice hockey).
Best Prediction Market Platforms for VT Residents
Kalshi, Robinhood, Polymarket US, OG.com, Novig, Chalkboard, Sleeper, Rebet — All available statewide.
DraftKings Predictions / FanDuel Predicts / Fanatics Markets — Not available (voluntary geofencing tied to VT sportsbook licenses).
Eligibility Checklist for VT Residents
- 18+ on CFTC-regulated prediction market platforms (VT state sportsbooks: 21+).
- Government ID + SSN for KYC verification.
- US bank account, debit card, or USDC wallet.
Tax Treatment for VT Residents
- Federal: IRC Section 1256 generally applies (60% long-term / 40% short-term capital gains).
- Vermont state: VT state income tax (3.35%–8.75%) applies to taxable gains.
- Not gambling income: Federal CFTC classification controls.
What Happens Next
- AG Clark posture: Likely unchanged.
- Additional operator licensing: VT could license additional commercial sportsbook operators, but the three-operator structure has been politically stable.
- Second Circuit precedent: VT sits in the Second Circuit. No prediction-market case currently pending.
Sources
- The Hill: [Lawmakers ramp up fight against sports betting on prediction markets](https://thehill.com/business/5798917-sports-betting-prediction-markets-cftc/)
- Holland & Knight: [Federal Appeals Court: CFTC Jurisdiction Over Sports Event Contracts](https://www.hklaw.com/en/insights/publications/2026/04/federal-appeals-court-cftc-jurisdiction-over-sports-event-contracts)
Platform Availability in Vermont
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Frequently Asked Questions
§ References & Sources
- Commodity Futures Trading Commission (CFTC)— U.S. federal regulator
- CFTC Designated Contract Markets list— CFTC
- 26 U.S. Code § 1256 — Section 1256 contracts marked to market— Cornell Law / U.S. Code
- IRS Form 6781 — Gains and Losses From Section 1256 Contracts— Internal Revenue Service
- National Council on Problem Gambling — 1-800-GAMBLER— NCPG