Wyoming Lawmakers Reject Proposed Tax Hike for Sportsbooks

Online sportsbooks scored a big win in the Cowboy State this week.

A Wyoming legislative committee has failed to approve a proposal to double the state’s tax rate for online sportsbooks. The bill would have raised the rate from 10% to 20%, which is around the national average. Instead, the state will continue to have one of the lowest in the country.

While the idea of a tax hike had been discussed for some time, one Republican caucus immediately voted it down, leading to a tense exchange with another. After they finished, the committee chair shared her frustration with reporters. 

We’re wasting a lot of Legislative Service Office time, a lot of legislators’ time … about gaming,” said Sen. Tara Nethercott (R-Cheyenne), the chair of the select committee. “I don’t think we should have another meeting to discuss this. I think it’s wasteful knowing that it’s so unproductive.”

When the tax hike was proposed, the Sports Betting Alliance (SBA) wasted no time issuing the same warnings they have used for years. They claimed a tax hike would ultimately be passed on to consumers, making them the actual victims. 

Wyoming’s Market Continues to Grow

While Wyoming has one of the country’s smallest sports betting markets, it has been thriving. They saw a 22% rise in annual handle in 2024, showing that the market still hasn’t found its ceiling.

There was some momentum to capitalize on this growth by doubling the tax rate for sportsbooks. This would help boost the state’s economy through a hike that, while significant, would have brought the state even with the national average.

However, many lawmakers took the warning of the SBA seriously. 

While other markets have seen sportsbooks ultimately back down, the battle in Illinois has changed that. Sportsbooks have enacted surcharges and raised minimum bet limits in response to a controversial new tax on each wager they accept. While we don’t know the exact impact the battle has had on the Illinois market, many expect it to shrink drastically. 

This fear led many Wyoming lawmakers to reject the idea of reversing its sports betting success.