Wyoming proposes doubling online sports wagering tax to 20%
Cowboy State becomes the latest to consider a tax increase in 2025, as Sports Betting Alliance warns against raise
Wyoming is contemplating doubling its online sports wagering tax rate from 10% of operator’s revenue to 20%.
Brought forward by representative Liz Storer, the legislation is being drafted with a view to putting it to the state legislature, according to digital news source Cowboy State Daily.
A motion passed on the back of a report from legislative service office fiscal analyst Karen Vaughn, which was given during last week’s meeting of the Wyoming Committee on Capital Financing and Investments.
Vaughn said that online sports betting? taxes in the Cowboy State were lower than “most” US states, with the average tax rate standing at 19%, according to her study.
The 10% rate for online sportsbooks in Wyoming is the same as that applied in Arizona, with the two states having two of the lightest tax burdens in the US.
In an email sent to the Cowboy State Daily, Sports Betting Alliance spokesman Nathan Click warned that raising taxes would make the vertical less desirable to players.
Click wrote: “Customers in states that have raised sports betting taxes wind up with a more costly sports betting experience – from worse promotions to decreased payouts.
“These type of changes also make legal sports betting products less able to compete against illegal and offshore sports betting operators that pay zero in taxes but are widely available online to bettors in Wyoming.”
The committee also asked for draft proposals on raising the tax rate on skill-based amusement games from 20% to 25% as well as the tax rate on historic horse racing from 1.5% to 2.5%.
Committee chair Tara Nethercroft, also speaking to the Cowboy State Daily, added: “As the industry has grown exponentially in recent years, Wyoming needs to establish enhanced oversight and revenues to match the growing needs from impacts in our communities.”
Five sportsbook operators are currently live in the state: FanDuel, DraftKings, BetMGM, Caesars Sportsbook, and Fanatics.
Wyoming’s potential tax hike comes at a time when several states have considered making a similar move since the start of 2025.
Last week, Louisiana approved legislation to raise the online sports betting tax rate from 15% to 21.5%.
Illinois lawmakers approved a last-minute state budget that saw a sports betting fee introduced that will see operators charged $0.25 on the first 20 million wagers, with that fee raised to $0.50 for every wager placed thereafter.
Both DraftKings and Flutter responded to the transaction fees by adding a $0.50 charge to customers to offset the cost.
In April, North Carolina brought forward a motion to double the tax rate for online sportsbooks from 18% to 36% from October 1, 2025.
However, that was stalled a month later when the House’s budget failed to pass, with the House and the Senate now due to thrash out the final details of a budget on July 1.