Wyoming Lawmakers To Explore Sports Betting Tax Increase

• A Wyoming committee discussed the initial steps of exploring an increase to the state’s sports betting tax rate
• Wyoming’s Select Committee on Capital Finances and Investment discussed potentially increasing the rate from 10% to 20%
• Committee members unanimously voted to draft a bill calling for the tax rate increase

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Wyoming has had no qualms this year in rocking the sports betting boat.

First, gaming regulators in the state declared in May there was no problem with limiting sports bettors in the Wyoming market. Now, gaming regulators are hoping they can double Wyoming’s sports betting tax rate next year.

Members of Wyoming’s Select Committee on Capital Finances and Investment last week unanimously approved a motion to draft a bill to increase the state’s sports betting tax rate from 10% to 20%.

Wyoming Examining Several Gaming Increases

The committee members revealed they are also examining the possibility of increasing Wyoming’s skill-based gaming tax rate from 20% to 25% and horse wagering from 1.5% to 2.5%. 

Wyoming’s current sports betting tax rate of 10% is on the lower side of legalized sports betting states across the country. An increase to 20% would put Wyoming more in line with what is the national average. The Cowboy State is just one of 10 states with legalized sports betting to have a sports betting tax rate of 10% or less.

Since launching online sports betting in 2021, the state has taken in nearly $4 million in sports betting tax revenues.

Wyoming currently boasts a market that includes FanDuel, DraftKings, BetMGM, Caesars Sportsbook, and Fanatics Sportsbook for its customers. ESPN BET has a license to operate in the state, but has not yet launched.

The current Wyoming legislative session concluded in March, so any potential bill will have to be approved next when the state opens its session on Feb. 9, 2026.

Latest State to Examine Tax Increases

Five states, including Wyoming, have publicly considered increases to their sports betting or iGaming rates in 2025. Louisiana and Maryland both approved increases to their sports betting rates – though not as big as originally proposed – while Illinois has instituted a new per-bet fee for each of its licensed operators.

Maryland Gov. Wes Moore (D) recently signed a bill into law to increase the state’s sports betting tax rate to 20%, up from 15%. He originally hoped to increase the rate to 32%, but settled on 20%.

Additionally, Louisiana lawmakers recently also approved a bill to increase the Pelican State’s online sports betting tax rate. The Louisiana Senate approved Rep. Neil Riser’s (R-20) bill, HB 639, by a 35-3 vote. The legislation calls for an increase to Louisiana’s online sports betting tax rate from its original 15% rate to 21.5%.

Riser’s bill originally called for an increase to 31%, but the rate was decreased after negotiations with licensed operators. Gov. Jeff Landry is expected to sign the bill into law soon.

New Jersey lawmakers are also considering an increase to the state’s sports betting and iGaming rates, though Assembly and Senate leaders may not have the stomach to increase both.

Illinois lawmakers also included a last minute plan in the fiscal year budget to charge a $0.25 fee on the first 20,000,000 online sports bets taken in the state each year. The fee will increase to $0.50 per bet for every single bet taken after the initial 20,000,000 bets.

Operators that do not cross the 20,000,000 bet threshold will likely see an equivalent 12.5% increase to the tax rate they are required to pay.

It is the second tax rate increase for sports betting operators in the state in the last year alone. Gov. Pritzker signed the Illinois FY 2025 budget into law on June 1, 2024, which included a new progressive tax rate for licensed state sportsbooks. The first-ever progressive tax rate for sports betting operators requires sportsbooks to pay a rate of 20% to 40% based on adjusted gross revenues.