VT Sports Betting Background Check Compliance and Regulation

Vermont Sports Betting Background Check Compliance and Regulation

Cannabis isn’t the only vice undergoing a regulatory revolution in the United States. While more states continue to consider the recreational legalization of cannabis, other states have looked to expansions of existing gambling laws to create new tax revenue streams. Betting on sports games has been broadly illegal in most of the United States for many years, but that’s changing. Once a fixture of Las Vegas or Atlantic City, legal sportsbooks could soon operate in states such as Vermont. Changes in background check compliance and regulation follow closely with the creation of a new arm of the industry.

The Department of Liquor and Lottery in Vermont, which will oversee the new betting systems, spent months throughout 2023 drafting administrative rules. Chief among these rules were the hiring provisions the DLL drafted. As initially created, this background check regulation would require thorough screening for every employee working for a sportsbook, regardless of their role. With the potential rollout of the system on the horizon, regulators continue to finalize the rules.

What Background Checks Does the Law Require?

Under the originally proposed rules, the DLL would require companies to process background checks and submit investigative reports to the commission. The goal: hire only those who have a “suitable character” to operate a gambling establishment. This goal would apply to the principal operator, plus all employees and anyone directly involved in the operation of the sports book. Applicants must be 21 or older and use Vermont’s fingerprint background check or obtain an independent third-party report. The law also requires a multi-jurisdictional criminal background check.

The search is exceptionally thorough, looking for criminal records and charges or offenses committed by the applicant’s immediate family. The required vetting also includes investigations into licenses held by the applicant and insights into an individual’s assets. Applicants should furnish extensive financial data, such as bank accounts, assets and liabilities, taxes paid, and much more. These efforts, combined with a criminal record check, aim to identify the “suitable character” necessary to operate a sportsbook legally and ethically.

Regulators Consider a Narrow Scope of the Proposed Rules

After issuing the rules described above in July 2023, additional comments eventually led the DLL to hold another meeting. The board heard concerns about the scope of the requirements, namely the cost and time required to engage in such extensive investigations for every employee. The board further heard recommendations to address the issue, primarily by adjusting the rules to apply only to those in management-level positions and higher.

The board has yet to make a final decision but seems poised to rule in favor of narrowing the background results. These rules would not go into effect until January 2024 at the earliest. The state has yet to select and license any sportsbook operators.

Finding Support to Achieve Background Check Compliance

Some elements mandated in the background check legislation surrounding new sports books require candidates to self-report information. However, the rules also require more traditional background check reporting. The right partner can make a difference for gaming providers who must staff their teams quickly to respond to shifting opportunities in the various state markets. With backgroundchecks.com, accessing many of those tools is simple.

With an instant criminal record search that explores a proprietary database of more than 650 million entries, thorough criminal history vetting is within easy reach. FCRA-compliant credit checks help to confirm a candidate’s financial stability by verifying self-reported information. Other tools, including drug screening and employment history verification, can also contribute to establishing the required “suitable character” of an applicant.

As the law on gambling changes in more places, employers must also monitor changes in background check compliance and regulation. A clear understanding of your current and future obligations and support from the appropriate screening partner contribute to positioning your business for success. Explore how to use our advanced screening solutions to comply with state laws.