Published on: September 12, 2025, at 11:17 AM.
Updated on: September 12, 2025, at 11:23 AM.
- Wyoming will maintain its 10% tax on online sports betting.
- New legislation aimed to increase the tax on online sportsbooks to 20%.
The taxation structure for online sports betting in Wyoming, which currently includes five online sportsbook operators, will remain unchanged until at least 2026.
Recently, a proposal to double the existing tax rate for online sportsbook operators was not approved by the committee. Although the Wyoming Legislature concluded its session in March, interim meetings are held throughout the year to discuss various legislative topics.
On Tuesday, the Select Committee on Capital Financing and Investments considered several gaming-related proposals, including one to raise the online sportsbook tax from 10% to 20%. After committee members affiliated with the Wyoming Freedom Caucus quickly opposed the first two of the four gaming bills, the committee, which consists of six state senators and six representatives, adjourned unexpectedly.
Tensions rose before the meeting concluded, with the committee chairs exchanging sharp comments.
“We are wasting the time of the Legislative Service Office and other legislators on gaming topics,” remarked Sen. Tara Nethercott (R-Cheyenne), chair of the select committee, criticizing House Republicans for swiftly rejecting the gaming proposals.
“I don’t see the benefit in holding another meeting on this as it’s clearly unproductive,” Nethercott stated.
Gaming Proposals Discarded
Wyoming Rep. John Bear (R-Gillette), vice chair of the committee and a prominent member of the Wyoming Freedom Caucus, contends that his group fights for limited government and promotes tax regulations conducive to investment within Wyoming.
Reps. Ken Pendergraft (R-Sheridan) and Jeremy Haroldson (R-Wheatland) joined Bear in opposing the gaming bills. When Nethercott jokingly suggested that the select committee should simply “adjourn for the day” following the pushback from Freedom Caucus members, Bear replied with an enthusiastic “aye.”
Wyoming’s online sports betting landscape includes significant players like FanDuel, DraftKings, BetMGM, Caesars Sportsbook, and Fanatics. Barstool Sports previously operated in the state; however, Penn Entertainment exited the market after transitioning its online sportsbook brand to ESPN Bet.
The sportsbooks advocated for the select committee to turn down the proposed tax increase. Representatives from the betting industry warned that a 100% tax hike would jeopardize their capacity to offer attractive promotions and competitive odds against unregulated offshore sportsbooks, which legal sports betting intended to eliminate.
The Sports Betting Alliance (SBA) emphasized that the increase would adversely impact operators across the industry.
“Operators will be forced to pass on increased costs to consumers, resulting in poorer odds, fewer promotions, and diminished investments in customer service and responsible gaming initiatives,” said Sara Filosa, a public policy strategist with the SBA.
Members of the SBA include prominent sportsbooks such as FanDuel, DraftKings, BetMGM, and Fanatics.
Wyoming’s Online Sports Betting Revenue Insights
Last year, Wyoming’s online sportsbooks recorded approximately $209.6 million in bets, reflecting an almost 22% increase compared to the previous year. The sportsbooks retained $22.8 million in revenue, marking a year-over-year growth of 32%.
Under Wyoming law, sportsbooks can lower their tax liabilities by deducting revenues generated from free bets, bonuses, and various promotions. In 2024, Wyoming reported a substantial $1.4 billion tax benefit from online sports betting activities.