Commissioner Wendy night told the Senate Economic Development, Housing & General Affairs committee on Jan. 9 that the state’s liquor, lottery and sports-wagering programs posted mixed results in fiscal 2025 and she will seek legislative approval this session to modernize the lottery.

“We had a $101,000,000 in sales revenue in FY25. That amounted to $18,000,000 in profit, and we were able to transfer $9,500,000 to the general fund,” the commissioner said, explaining the lower transfer reflected an earlier effort to zero out a prior fund deficit.

On the lottery, she said Vermont Lottery revenue reached $155,000,000 in FY25, with a $30,000,000 transfer to the Education Fund; she projected a $32,000,000 transfer in FY26 and stressed lottery profits fund a small portion of the Ed Fund.

The commissioner announced a policy initiative to permit digital lottery purchases on web browsers and mobile devices, describing the change as a complement to retail agents rather than a replacement. She said 15 other states have launched digital lottery offerings and the department projects $2,400,000 in first-year digital revenue, with additional revenue in year two.

Under the proposal, retail agents that drive digital sign-ups would receive a one-time commission for registrations via QR code and a prorated share of digital revenue allocated to agents. The department would operate as the agent for digital sales and allocate a portion of digital revenue back to almost 600 retail lottery agents.

If lawmakers give approval by May, the department would issue an RFP, select an operator, negotiate a contract and then allow 6–8 months for the vendor build and testing; the commissioner said that timeline points to a likely 2027 service launch and no state app-development startup cost because app development would be built into the vendor revenue-share arrangement.

On sports wagering, the commissioner said Vermont earned $6,200,000 in revenue share for FY25 after launching in January 2024. She told the committee that wagering is seasonal and tied to major events; approximately 40–46% of active sportsbook app users in Vermont during FY25 were out-of-state visitors, which she said benefits from the state’s tourist economy.

The commissioner said the department also launched a B2B ordering portal for on-premise licensees (vendor: Provi) to increase ordering efficiency while agent stores continue to fill product and earn commission.

The department plans to provide comparative data for nearby control states on year-over-year liquor sales, and the commissioner noted spirits, wine, cider and beer sales are down nationally but Vermont’s decline is smaller than several regional peers.

The committee did not vote on any bill at the meeting. The commissioner said the digital-lottery bill has a House sponsor and a companion in the Senate and that the department will provide additional data and a procurement timeline to members as the legislative session proceeds.