Wyoming legislators are advancing a series of proposals to raise gambling taxes and tighten oversight as gaming activity grows statewide. During a recent meeting of the Select Committee on Capital Financing and Investments, lawmakers expressed concern over low tax returns despite expanding gambling operations.
Between 2019 and 2024, online sports wagers in Wyoming totaled $629.7 million, but only $3.8 million reached state coffers—just 10% of operator revenue. Legislative Service Office fiscal analyst Karen Vaughn noted this falls well below the national average of 19%, with some states like Illinois taxing as high as 40%.
Draft Legislation Includes Broad Tax Reforms
The committee directed staff to draft legislation that includes:
- Raising the online sports betting tax from 10% to 20%
- Increasing the skill-based amusement game tax from 20% to 25%, with extra funds going toward highway improvements
- Boosting the tax on historic horse racing from 1.5% to 2.5%, not including the 0.4% breeder’s fund fee
- Implementing a third-party central monitoring system for gaming machines across bars, truck stops, and gaming halls
Sen. Tara Nethercott, R-Cheyenne, the committee chair, defended the proposals: “The state of Wyoming has been quite generous to the players in this space,” she said. “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.”
Pushback From Gaming Industry
Gaming operators and industry groups voiced strong opposition, arguing that higher taxes would damage small businesses and reduce competitiveness.
“If the Wyoming Legislature passes this tax increase, it would make Wyoming’s tax rate (on these games) one of the highest in the country,” said Jonathan Downing, spokesperson for Cowboy Skill LLC.
Mike Moser of the Wyoming State Liquor Association added that operators may shift the financial burden onto host businesses, reducing their share of revenues and impacting customers’ gaming experiences.
The historic horse racing sector also raised concerns. Tracy Lacock, general counsel for Wyoming Downs and 307 Horse Racing, stressed the industry’s role as a major employer. “We employ 400 people in this state… We’re paying benefits. We’re paying life insurance, health insurance,” she said, urging lawmakers to consider how higher taxes could affect workers and infrastructure.
Revenue and Regulation Lag Behind Growth
In 2024, Wyoming’s skill games industry reported $31.13 million in net revenue, resulting in $6.2 million in taxes. Local governments, the Gaming Commission, and public schools received shares of that revenue.
The parimutuel sector, which brought in a $2.15 billion handle, returned $1.9 billion to players and contributed $38 million to state and local programs. Still, lawmakers believe the state’s share remains disproportionately small.
Rep. Liz Storer’s motion to double the sports betting tax passed, despite concerns raised by Nathan Click of the Sports Betting Alliance. “Customers in states that have raised sports betting taxes wind up with a more costly sports betting experience,” he said, warning that offshore competitors may benefit.
Source:
“Wyoming lawmakers move to increase state’s share of gambling revenue”, wyomingnews.com, Jun 12, 2025
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