Wyoming lawmakers pursue 20% online sports betting tax

The Wyoming Legislature’s Select Committee on Capital Financing and Investments has proposed three tax hikes on various forms of gambling, including a rise in online sports betting taxes from 10% to 20%. 

Committee Chair Tara Nethercott was reportedly a “driving proponent” of the measures, which would also increase the taxes on skill-based games to 25% from its current 20% rate, as well as raise taxes on historical horseracing from 1.5% to 2.5%. 

Nethercott spoke during an open discussion on skill-based games, having said, “I think the state of Wyoming has been quite generous to the players in this space. Giving them almost exclusive access to the market, in a proliferated rate — having infiltrated every block of all our communities.”  

According to local reports, the state has collected $3.8m in online sports betting taxes since sportsbooks officially launched across Wyoming during September 2021. Throughout 2024, Wyoming generated nearly $25m from 16 different gambling vendors. 

Nethercott also went on to state Wyoming has offered “modest regulation with little oversight,” and is now pushing for revenues that “match the industry.”

Good to know: The Wyoming Gaming Commission issued a direct warning to residents and visitors regarding illegal iGaming operators that may be conducting business without proper licensing or regulation on May 22

The news comes as states such as Illinois have recently authorized an increase on sports wagering taxes, with lawmakers from the Prairie State approving a new budget which will enforce a $0.25 per-bet tax on the first 20 million wagers accepted by an operator. The rate then grows to $0.50 per wager for any bets taken thereafter. 

In response, both FanDuel and DraftKings will enforce a transaction fee of $0.50 per wager to help offset the losses from the Illinois legislation. 

Maryland lawmakers approved a sports betting tax increase of 15% to 20% during budget negotiations, while Louisiana recently passed a bill to raise its tax rate to 21.5% from 15%.

Kirk Geller

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