Liquor and Lottery seek a slightly smaller FY27 budget as online lottery bill advances

Wendy Knight, commissioner of the Department of Liquor and Lottery, told the Senate Appropriations Committee the department’s FY27 budget request is $1,000,000 lower than last year and described a pending bill to authorize digital (online and phone) lottery sales that would not produce revenue until FY28 if enacted.

Knight summarized the department’s scope—liquor regulation, the Vermont Lottery, tobacco and sports wagering—and said enterprise transfers projected for FY27 include liquor control (~$19.1 million), lottery (~$33,241,000) and sports wagering (~$6,700,000). She said the governor’s administration used those projections to populate the budget and that the department has revised downward some earlier estimates because retail sales and wagering payouts have changed.

The commissioner described a separate policy bill, cosponsored in the Senate by Senator Brennan, that would authorize vendors to sell lottery tickets online and by phone. Knight said the department has estimated additional revenue from online lottery at about $2,400,000 in the first year, just under $5,000,000 in year two and roughly $10,000,000 in year three, but added that those revenues would not appear in FY27 because a vendor procurement, contract negotiation and a six‑to‑eight month launch timeframe would push receipts to FY28.

Knight said the FY27 request is lower mainly because a one‑time business‑to‑business (B2B) website project previously budgeted at roughly $1,800,000 was completed and should be removed from the base. She described that B2B system as a recently launched ordering platform for on‑premise licensees and said licensees have reported positive feedback.

On operating lines, Knight noted a year‑three reduction in a three‑year point‑of‑sale hardware contract and a modest $37,000 TV‑advertising increase tied to branding campaigns for the Vermont Lottery and the 802 Spirits program, which encourages in‑state purchases at local spirit agents. The commissioner also addressed a flagged reduction of about $11,000 in a responsible‑gaming line, saying the department increased responsible‑gaming messaging and partners with the Department of Mental Health for services; she committed to provide exact spending detail to the committee.

Knight said the department is not counting vacancy savings in the FY27 request (positions are routinely filled), reported about 72 employees across what she described as a roughly $280 million enterprise, and agreed to send the committee a clear FY27 projection column for the budget document.

The committee did not take formal votes on the department’s request; members requested the FY27 projection tables and additional line‑item detail on advertising and responsible‑gaming spending.