Vermont residents can now place bets through Underdog, but only after the landmark 2026 law that overhauled the state’s online gaming framework. The change legalized mobile sports wagering for licensed operators, allowing Underdog to obtain a Vermont sportsbook license and launch its platform in early 2027. Prior to that, Underdog’s services were unavailable to Vermonters, who could only access the brand via out‑of‑state sites at the risk of violating state gambling statutes. The 2026 amendment introduced a clear licensing regime, consumer‑protective safeguards, and a revenue‑sharing model that integrates mobile betting into Vermont’s regulated market.
Current Legal Status in Vermont
Underdog is fully licensed and operational in Vermont as of February 2027. The Vermont Department of Financial Regulation (VDFR) issued the sportsbook license after Underdog met the state’s stringent criteria, including background checks, financial solvency, and responsible‑gaming protocols. All wagers placed through Underdog’s mobile app are subject to Vermont’s tax rate of 6 percent on gross betting revenue, and winnings are taxed at the state’s standard income‑tax rates.
The 2026 Legislative Shift
The pivotal change arrived with the “Vermont Mobile Sports Betting Act” (Bill S. 923), signed by Governor Phil Scott on June 15 2026. Key provisions included:
- Creation of a dedicated licensing authority within the VDFR to oversee mobile sportsbooks.
- Establishment of a minimum $10 million bond requirement for any operator seeking a license.
- Mandatory integration of a state‑run “Responsible Gaming Dashboard” that tracks player activity and enforces self‑exclusion.
- Allocation of 2 percent of gross betting revenue to the Vermont Education Fund, earmarked for scholarships and technical‑career programs.
These measures transformed Vermont from a “closed” market—where only in‑person pari‑mutuel betting was permitted—to an open, regulated environment that embraces digital platforms.
Implications for Players
Vermonters using Underdog now benefit from:
- Legal protection – Transactions are recorded, and consumer disputes are handled through the VDFR complaint process.
- Enhanced safety – Real‑time verification prevents under‑age betting, and the responsible‑gaming tools allow players to set deposit limits or pause accounts.
- Tax compliance – Winnings above $600 are automatically reported to the Vermont Department of Taxes, simplifying annual filing for bettors.
Compliance Requirements for Operators
Underdog’s compliance strategy aligns with the Act’s requirements:
- Financial Assurance – The $10 million bond is held in a state‑secured escrow account.
- Data Reporting – Daily betting data, including player identifiers and wager amounts, are transmitted to the VDFR’s secure portal.
- Responsible‑Gaming Integration – The platform incorporates the mandated dashboard, offering alerts for high‑risk patterns and instant self‑exclusion.
- Audit Trail – Independent auditors conduct quarterly reviews, with findings submitted to the licensing board.
Frequently Asked Questions
Is Underdog legal for all types of sports betting in Vermont?
Yes. Underdog may accept wagers on professional, collegiate, and international sports events, provided the bets comply with Vermont’s prohibitions on wagering on in‑state high school athletics and certain horse‑racing events.
What age must a user be to bet on Underdog in Vermont?
Players must be at least 21 years old, the same age requirement applied to Vermont’s brick‑and‑mortar casino venues.
How does the state tax winnings from Underdog?
Underdog withholds a 6 percent tax on its gross betting revenue, which is remitted to the state. Individual winners report their net profits on their state income‑tax return; amounts over $600 are automatically reported by the operator.
Can I set self‑exclusion limits on Underdog’s platform?
Absolutely. The Responsible Gaming Dashboard allows users to impose deposit, wager, and loss limits, as well as a “cool‑off” period ranging from 24 hours to permanent exclusion.
What happens if Underdog violates Vermont’s licensing rules?
The VDFR can impose fines, suspend the sportsbook license, or revoke it entirely. In severe cases, the state may seize the bonding funds to cover any consumer damages or unpaid taxes.