Vermont Bill H.913 Proposes Illinois-Style Per-Bet Tax and Criminal Ban on Prediction Markets

Vermont House Bill 913 proposes a $0.50 per-bet fee for sportsbooks and a criminal ban on prediction market contracts related to politics and war.

By: AXL Media

Published: Mar 3, 2026, 10:16 AM EST

Source: The information in this article was sourced from Gambling Insider

Adopting the "Illinois Model" for Sportsbook Taxation

Vermont is the latest state to look toward a "per-wager" tax structure for its sports betting industry. House Bill 913 (H.913) proposes a flat $0.50 fee for every bet placed through the state's legal sports wagering operators. This model is inspired by Illinois, which enacted a similar structure in 2025. While Illinois uses a tiered system ($0.25 for the first 20 million bets, $0.50 thereafter), Vermont intends to implement the $0.50 rate immediately. This tax is applied in addition to existing revenue-based taxes, a combination that has historically faced significant backlash from major operators.

Impact on a Small Betting Market

The introduction of a per-bet fee in Vermont carries unique risks. As one of the smallest betting markets in the United States, Vermont currently hosts only three licensed sportsbooks. Analysts suggest that the added financial burden of a $0.50 fee per bet—regardless of the bet’s size—could make the state unprofitable for operators. This could lead to operators introducing customer surcharges, increasing minimum bet requirements, or withdrawing from the state entirely. Similar fees in Illinois have already led to a documented decline in total wager volume.

Criminalizing Prediction Market Contracts

Beyond sports betting fees, H.913 takes an aggressive stance against the burgeoning prediction market industry. The bill seeks to amend the state’s criminal statutes to explicitly prohibit the offering of prediction market "securities or commodities." The language of the bill is intentionally broad, targeting contracts linked to political campaigns, sports outcomes, natural disasters, war, and even the death of individuals. By moving these activities into the criminal code, Vermont aims to effectively shut down platforms like Kalshi and Polymarket within its borders.