June 16, 2025, 09:21h.
Wyoming Considering Increase in Tax on Online Sports Betting
Last updated on: June 16, 2025, 10:01h.
Wyoming Lawmakers Mulling Over a Boost in Online Sportsbooks Taxes
- Currently, online sportsbooks hand over 10% of their revenue to the state
- Wyoming is the latest addition to the list of states mulling over tax hikes for online sports betting
Wyoming politicians are hopping on the bandwagon of states pondering tax increases for sports betting.
In Wyoming, legal sports betting ventures with commercial online sportsbooks and in-person tribal casinos are the norm. Wyoming's online sports betting platforms have a 10% state tax on their gross win, or the money left after winners are paid out.
This levy might soon see a spike, with the Select Committee on Capital Financing and Investments getting insights from the Legislative Service Office. There's a suggestion that Wyoming's 10% tax is less than half the national average. Karen Vaughn, a fiscal analyst within the Legislature's nonpartisan advisory office, informed the Select Committee that the national average tax rate for online sports betting states is hovering around 19%.
Wyoming's minuscule population with only 600K residents and patchy cell phone/internet service didn't deter the five operators (FanDuel, DraftKings, BetMGM, Caesars Sportsbook, and Fanatics) who found Wyoming enticing with its low tax. The $100K licensing fee for five years (renewals cost $50K) seemed a reasonable trade-off for them.
Tackling the Budget Gap: Raising the Online Sports Betting Tax
Rep. Liz Storer (D-Jackson) took note of the potential state funds left untapped and proposed authoring a bill to lift the state's online sports betting tax. Storer suggested an initial increase to 20%, although Select Committee members mentioned this would merely serve as a starting point.
It's worth mentioning that this legislative change would exclude the 10% tax on tribal casino sports betting revenue, which falls under Class III gaming compacts between the Native American communities and Gov. Mark Gordon (R).
Wyoming's commercial online sportsbooks might push back against any tax hikes, considering the state trails in revenue generation with annual winnings for oddsmakers below $20 million. By comparison, oddsmakers in New York pocketed over $2 billion in net win last year.
State Tax Hikes: Trends and Responses
Wyoming's sports betting tax hike is under discussion after Illinois lawmakers doubled their online taxes in the past two years. DraftKings and FanDuel retaliated to the latest tax hike with a half-a-dollar surcharge on each bet[2].
New Jersey legislators are looking at bumping up the state's 13% effective tax on online sportsbooks, contemplating their next move as New York's online sports betting market thrives despite a burdensome 51% tax[4].
Earlier this month, the Louisiana State Legislature moved forward with a bill to boost the mobile sports betting tax rate from 15% to 21.5%. The revised bill is more moderate than the initial proposal of a 32.5% tax rate, with the measure designed to address the state's budget deficit, in part by funding public college athletics and students with disabilities[3].
Sportsbooks complain that higher taxes give their legal operations a competitive disadvantage compared to offshore sites, which do not pay any taxes[1].
[1] [Bet Washington] (https://www.betwashington.com/)[2] [SportsHandle] (https://www.sportshandle.com/)[3] [Legal Sports Report] (https://lvrj.com)[4] [Forbes] (https://www.forbes.com/)[5] [CBS News] (https://www.cbsnews.com/)
- Wyoming's online sports betting platforms currently pay a 10% tax on their gross win to the state, but this might change as lawmakers consider a potential tax increase.
- The suggested tax rate hovering around 19% is more than double Wyoming's current rate, and it could serve as a starting point for negotiations.
- The opinions of Wyoming's commercial online sportsbooks regarding any potential tax hike are yet to be known, considering the state trails in revenue generation compared to states like New York.
- Across the nation, states are grappling with the implications of policy-and-legislation changes in sports betting, with Illinois and New Jersey among those considering tax hikes.
- In Illinois, online sports betting taxes have been doubled in the past two years, prompting DraftKings and FanDuel to impose a half-dollar surcharge on each bet.
- New Jersey legislators are contemplating increasing the state's effective tax on online sportsbooks, as they watch New York's online sports betting market thrive despite a burdensome 51% tax.
- More recently, the Louisiana State Legislature has moved forward with a bill to boost the mobile sports betting tax rate from 15% to 21.5%, a move designed to address the state's budget deficit and fund public college athletics and students with disabilities.
