House committee reviews bill to allow online lottery sales; commissioner cites safeguards and modest revenue for education
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Summary
A House committee reviewed H.669, which would let Vermont’s Department of Liquor and Lottery sell state lottery tickets by mobile app and web; the commissioner described age verification, geolocation and retailer revenue-sharing, and projected $2.4M (partial) in the first operational year to the Education Fund.
A House committee on Feb. 4 heard testimony on H.669, a bill that would authorize the Department of Liquor and Lottery to sell Vermont lottery tickets online and via mobile apps, with the department proposing enhanced procedures and a retailer revenue-sharing model, department officials told lawmakers.
The bill (identified in counsel’s summary as H.669) would add explicit authority in the state lottery chapter (31 VSA, chapter 14) to permit the Board of Liquor and Lottery, through the commissioner, to sell tickets, products and subscriptions over the Internet and by mobile device. Legislative counsel Tucker Anderson told the committee that purchases would be required to be initiated and received within Vermont and that the bill includes Public Records Act exemptions for personal financial and wagering information, business trade secrets/financial records and security/technology records, which the bill would treat as confidential when produced to the department.
Why it matters: the Department of Liquor and Lottery says online sales would capture players who do not currently visit retail agents, and that additional proceeds would flow into the Education Fund. Commissioner Wendy Knight said the department would use enhanced procedures in lieu of formal rulemaking to set operational details, citing the approach used for online sports wagering.
"The only thing digital lottery is is it's a mechanism," Commissioner Wendy Knight said, arguing that digital options would offer the same games offered in stores and not expand the types of gaming available. Knight added that the program would include age verification, geolocation, timeouts, deposit limits and voluntary self-exclusion measures. "There are actually more safeguards when you're purchasing lottery tickets on the phone than there are if you go into a retail store," she said.
Retailer protections: Representative Michael Markov, a longtime lottery retailer who introduced the bill and identified himself as chair of House Commerce and Economic Development, said he has seen in-store ticket sales decline and supported offering an online option to capture younger players. Markov said he was concerned about protecting in‑store retailers; Knight said every lottery agent would receive a share of online sales and that agents could receive referral commissions via QR codes and other marketing to drive in‑store foot traffic.
Legal and administrative mechanics: counsel described a provision that would allow the board to adopt "procedures" under the Administrative Procedures Act rather than full rulemaking; those procedures would be published and subject to at least two public hearings before adoption and would carry the force of law for purchasers. Counsel also advised that Public Records Act exemptions would not block judicial discovery or subpoena in litigation.
Timeline and revenue: Knight said the department would issue an RFP for a single vendor, with contract negotiation and platform development taking six to eight months; assuming passage and authorization in July, the department estimated a realistic launch in December 2027. The commissioner provided projected incremental revenue to the Education Fund of roughly $2,400,000 in the first partial year, about $4,900,000 in year two and about $9,940,000 in year three.
Concerns and follow-ups: committee members asked whether the online product would increase problem gambling or make it easier to overspend. Committee members also pressed on underage access. Knight said payments would be by debit (not credit), and that operators would be able to detect risky behavior and direct players to resources. Representative Evans asked for data showing retail impacts; Knight said the department would follow up with comparative data from states that have implemented online lottery programs.
No formal committee vote was recorded during the session; members recessed the meeting until 2:30 p.m. for budget work and asked the department to provide additional state comparisons and information on safeguards and the proposed revenue-share mechanism.