Sportsbooks face higher tax rate in Wyoming
Wyoming Contemplates Increase in Taxes for Sportsbooks
📸 Photo by James St. John, CC BY 2.0, via Wikimedia Commons
The Looming 20% Tax
As online sports betting expands, Wyoming's Select Committee on Capital Financing and Investments has suggested increasing the tax rate for sportsbooks from 10% to 20%. This move, proposed in June 2025, aligns the state with the national average and could significantly boost tax revenue [1][4][5].
Current Revenue and Market
Since online sports betting was legalized in Wyoming in September 2021, the state has amassed around $3.8 million in taxes on $69 million in sports betting revenue [1]. The allure of Wyoming for sportsbooks partly comes from its low 10% tax rate versus the national average around 19% [1]. Established operators such as FanDuel, DraftKings, BetMGM, Caesars Sportsbook, and Fanatics Sportsbook have set up shop in the state, thanks to the attractive licensing fee [3][5].
However, the proposed hike to 20% could impact the market's growth and operators' participation, as they may pass on costs to bettors or rethink their involvement due to Wyoming's relatively small population [3].
The Road Ahead
The legislature adjourned in March 2025, so any bill to implement this tax increase would need approval during the next session starting February 2026 [5]. As Wyoming weighs the benefits of increased revenue against potential market challenges, the future of online sports betting remains uncertain.
[1] Wyoming Tribune Eagle. (2025). State panel approves potential sports betting tax increase. Retrieved June 17, 2025, from https://www.wyomingnews.com/
[2] Casinos.com. (n.d.). Top Casino Reviews, News, and Strategy. Retrieved June 17, 2025, from https://www.casinos.com/
[3] Casinosearcher.com. (n.d.). Wyoming Sports Betting - Online & Legal Sports Gambling - Casinosearcher.com. Retrieved June 17, 2025, from https://www.casinosearcher.com/us/wyoming/sportsbetting/
[4] Gambling USA. (2022). Wyoming Sports Betting Revenue Crosses $3 Million Mark. Retrieved June 17, 2025, from https://usgambling.com/
[5] Wyoming Department of Revenue. (n.d.). Tax Rates & Fees - Gambling Tax. Retrieved June 17, 2025, from https://tax.wyo.gov/
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- The increase in tax rate for sportsbooks in Wyoming from 10% to 20%, as suggested by the Select Committee on Capital Financing and Investments, aligns the state with the national average for taxation in the online casino industry.
- Established operators in the online sports betting market, such as FanDuel, DraftKings, BetMGM, Caesars Sportsbook, and Fanatics Sportsbook, have entered the Wyoming market due to its attractive 10% tax rate and low licensing fees.
- If the proposed 20% tax hike becomes law, it could potentially impact the market's growth and operators' participation, as they might pass on costs to bettors or reconsider their involvement due to Wyoming's smaller population.
- The future of online sports betting in Wyoming is uncertain, as the state weighs the potential increase in revenue against potential market challenges and considers the implications for the banking-and-insurance and finance sectors, which are closely related to the online casino and sports-betting industry.
