Wyoming Sports Betting Tax Rate Remains Unchanged Following Testy Hearing
Posted on: September 12, 2025, 11:17h.
Last updated on: September 12, 2025, 11:23h.
- Wyoming’s 10% tax on online sports betting will remain
- Legislation sought to double the tax on online sportsbooks to 20%
The Wyoming sports betting tax paid by the state’s five online sportsbooks will remain the same through at least 2026.
This week, legislation that would double the effective tax that the online sportsbook operators pay to the state government failed to move out of committee. While the Wyoming Legislature adjourned in March, lawmakers hold interim meetings throughout the year where various topics are considered for the upcoming year’s session.
On Tuesday, the Select Committee on Capital Financing and Investments briefly considered gaming proposals, with one measure seeking to double the online sportsbook tax from 10% to 20%. After the first two of the four gaming bills were voted down by committee members aligned with the Wyoming Freedom Caucus, the select committee, comprised of six state senators and six representatives, abruptly adjourned.
The meeting ended, but not before the select committee chairs exchanged heated words.
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, who took issue with House Republicans quickly voting down the gaming bills.
“I don’t think we should have another meeting to discuss this. I think it’s wasteful knowing that it’s so unproductive,” Nethercott declared.
Gaming Bills Shelved
Wyoming Rep. John Bear (R-Gillette) serves as vice chair of the select committee. The emeritus chairman of the Wyoming Freedom Caucus, Bear and his cohorts claim to be champions for limited government and advocate for favorable tax laws that encourage investment in the Cowboy State.
Reps. Ken Pendergraft (R-Sheridan) and Jeremy Haroldson (R-Wheatland) aligned with Bear in voting against the gaming proposals. When Nethercott sarcastically asked if the select committee should just “quit for the day” following the quick backlash from the Freedom Caucus members, Bear answered with an “aye.”
Wyoming’s online sports betting market includes FanDuel, DraftKings, BetMGM, Caesars Sportsbook, and Fanatics. Barstool Sports previously operated in the state, but Penn Entertainment folded on the market after converting its online sports betting brand to ESPN Bet.
The sportsbooks encouraged the select committee to reject the tax hike proposal. Sports betting representatives said a 100% tax increase would hurt the books’ ability to provide bettors with promotions and competitive odds against unregulated, offshore sportsbooks — the illegal operators that legal sports gambling was to eradicate.
The Sports Betting Alliance (SBA) testified that a higher tax would hurt operators across the board.
Operators will have no choice but to pass costs on to consumers with worse odds, fewer promotions, and reduced investment in customer service and responsible gaming,” said Sara Filosa, a public policy strategist working with the SBA.
SBA members include FanDuel, DraftKings, BetMGM, and Fanatics.
Wyoming Sports Betting Revenue
Wyoming online sportsbooks took about $209.6 million in bets last year, a nearly 22% gain on the prior year. Oddsmakers kept $22.8 million of the action, a year-over-year revenue increase of 32%.
Wyoming law allows sportsbooks to reduce their tax liability by deducting revenue stemming from free bets, bonuses, and other promotions. Wyoming reported a $1.4 billion tax benefit from online sports betting in 2024.
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