“No” on H.127
2023-03-21
Dear friend,
H.127: An act relating to sports wagering would create a legal online sports wagering industry in Vermont. We would be following in the wake of 31 states, including the rest of New England and Canada, that have legalized and created revenue-sharing agreements.
In the near future, companies like FanDuel and Draft Kings are set to bring sports betting to phones, tablets, and computers across Vermont.
Supporters of H.127 argue that sports betting is already here, so let's regulate it. Using technical workarounds (like VPNs) or by driving over our borders, Vermonters are already accessing these platforms.
“A regulated market would provide consumer protection in a way the illicit market currently does not," said Senate President Pro Tem Phil Baruth, in support of a similar Senate bill.
H.127 has been supported by our House Government Operations & Military Affairs (HGOMA, if you like) committee, which worked on this a lot. It's been supported and further improved by our House Appropriations and Ways & Means committees. All indications are that it will be approved by both House and Senate and get the Governor's signature.
The bill would give Vermont's Department of Liquor and Lottery several tools to work with as it regulates a legal market of sports wagering through contracts with sports wagering operators. H.127 includes "guardrails" (a popular word in the State House) meant to protect us from harmful behavior. For example, it will prohibit advertising to children. It will provide tools for individuals who want to exclude themselves from online gambling.
Proponents acknowledge that no law establishing a new industry will be perfect right away. We can improve on it in the future.
However, I plan to vote "No" on H.127.
Here's why.
First, while I cannot seek agreement with all my constituents, I listen. I can't recall any constituents asking me to help legalize online sports wagering in Vermont. (If you do support this bill, now's a good time to let me know.)
Sporting events are fun. Having skin in the game of an outcome is a rush. Sports betting can be exciting. I encourage folks who enjoy it to do so responsibly in a place where it is legal and regulated.
However, somewhere around 1%–4% of the adult population, and 2%–4% of the adolescent population, struggle with pathological gambling. That addiction is also associated with alcohol abuse, hiding debts from a spouse or family member, and even criminal activity.
At a time when addiction and mental health issues are prevalent in Vermont, I'm cautious about legalizing and normalizing a new industry that is associated with a high risk of problem gambling.
I'm especially cautious because of another type of addiction -- our phones.
--47% of Americans say they are phone-addicted.
--71% of people spend more time on their phone than with their romantic partner.
--The average American checks their smartphone 352 times per day.
--Over 60% of children spend 4+ hours per day on phones.
Why aren't we spending more time talking about this?
Perhaps because phone addiction is perceived as not being harmful. The website I found those statistics on stated, "smartphone addiction may not have the capability to destroy lives like drugs or gambling."
That's about to change. Combining legal online gambling with our already-addictive phones will compound both problems. The state of Vermont is about to create a legal market and tax revenue (estimated at ~$4 million/year) by monetizing our inattention.
I could be wrong, but I think the social and economic costs of this bill are underestimated, relative to modest benefits and tax revenue. I will vote "No."