.svg)
After failing to defeat tax increases in Louisiana, Maryland and Illinois, sports-betting operators and their lobbyists are now expected to descend on the state capitol in Cheyenne in an effort to prevent lawmakers from doubling the tax rate in Wyoming.
Since Wyoming legalized online sports betting in 2021, online wagering handle has totaled $629.7m, but the state has received only $3.8m in tax revenue, according to the Wyoming Legislative Service Office (LSO).
Wyoming currently taxes online sports betting at 10 percent of net revenues after various deductions, with lawmakers now supporting a draft bill to double the rate to 20 percent.
During a meeting before the Wyoming legislature’s Select Committee on Capital Finances and Investment last week, LSO fiscal analyst Karen Vaughn told lawmakers that the average tax rate for sports betting in the U.S. was 19 percent.
Vaughn assured lawmakers that “none of the surrounding states are lower than 10 percent” when it comes to taxing mobile wagering. Wyoming is bordered by six states, including Montana to the north, South Dakota and Nebraska to the east, Colorado and Utah to the south, and Idaho to the west.
Sports betting in Montana, South Dakota and Nebraska is limited to retail wagering, while the sports-betting tax rate on mobile wagering in Colorado is 10 percent.
Earlier this year, Colorado lawmakers chose to increase revenue for water projects by fully eliminating a tax deduction for free bets by July 1, 2026.
After Vaughn’s presentation, Representative Liz Storer, a Democrat, successfully moved to draft a bill raising the online sports betting tax rate in Wyoming to 20 percent.
The 20 percent rate “is a placeholder”, said Republican Senator Tara Nethercott, chair of the committee.
Nethercott reminded her colleagues that passing a draft bill will allow the LSO to produce a fiscal note so that lawmakers can assess the impact of the tax increase at the committee’s next meeting on September 9.
“Obviously, there’ll be a detailed discussion at our next meeting on that draft and the implications of it,” Nethercott said. “No doubt we will hear from folks from the online sports wagering industry.”
Currently, BetMGM, DraftKings, FanDuel, Fanatics, ESPN BET and Caesars are the six licensed online sportsbooks in Wyoming.
The committee also moved to draft bills to raise the state tax on skill-based games from 20 percent to 25 percent of revenue, as well as raise the tax on historic horseracing machines from 1.5 percent to 2.5 percent of handle.
Wyoming’s legislature adjourned in March. Lawmakers meet in odd-numbered years, but bills drafted this year could be considered during the 2026 budget session in February, which typically lasts 20 legislative days. Except for the budget bill, all other legislation would require a two-thirds vote from the Senate or House for introduction.
The legislature’s next general session will begin on January 12, 2027.
Down In The Bayou
Wyoming's move to reconsider its tax rate follows a much broader policy trend.
In Louisiana, sports-betting operators are now facing a tax increase after Republican Governor Jeff Landry signed House Bill 639 on June 11, one day after it was sent to the governor for executive approval. Confirmation that the bill was signed came on Tuesday (June 16) via a notice published on the state legislature's website.
Beginning on August 1, the Pelican State’s tax rate on sports betting will increase from 15 percent to 21.5 percent of gross revenue.
Republican Representative Neil Riser’s original bill would have increased the sports betting tax from 15 percent to 32.5 percent, the same rate as video poker devices at truck stops. However, the bill was amended to include the lower increase after discussions with the gaming industry.
Additionally, Illinois Governor JB Pritzker, a Democrat, signed the state's fiscal year 2026 budget bill into law on Monday, including a unique provision taxing sports-betting operators an additional 25 cents on every wager up to the first 20 million wagers accepted annually.
Every wager beyond 20m will be taxed at 50 cents per wager.
It is the second tax increase in Illinois in the last year. In June 2024, Pritzker signed the fiscal year 2025 budget that included a progressive tax rate for sports betting operators requiring them to pay a rate of 20 percent to 40 percent based on adjusted gross revenues, instead of a prior state tax rate of 15 percent.
In Maryland, the tax rate for mobile sports betting has been increased to 20 percent from 15 percent of gross revenues after Governor Wes Moore, a Democrat, signed the state’s new budget law in May. The tax rate for retail sports betting remains at 15 percent.
Meanwhile, proposals to increase sports-betting taxes in New Jersey and North Carolina are pending as part of the budget process in both states.
New Jersey Governor Phil Murphy, a Democrat, has proposed an increase in the state tax rate applied to online sports betting from 13 percent to 25 percent. In North Carolina, the House and Senate have established a conference committee to agree on a final budget plan, after the House declined to approve a Senate proposal to increase the sports-wagering tax rate from 18 percent to 36 percent.
