- Wyoming lawmakers are drafting a bill to double the state’s online sports betting tax rate from 10% to 20%, aiming to boost revenue and bring the state in line with national norms.
- Despite generating over $645 million in wagers and $66 million in operator revenue since 2021, Wyoming has collected just $3.9 million in taxes—only 0.04% of the national total.
CHEYENNE, Wyo. – Wyoming lawmakers are pushing forward with a bill to double the state’s online sports betting tax rate from 10% to 20%, aiming to correct what they describe as a serious imbalance between operator profits and public benefit.
The proposal, introduced by the Wyoming Legislature’s Select Committee on Capital Financing and Investments, is currently in draft form but received unanimous approval to proceed. Committee Chair Sen. Tara Nethercott said the Wyoming sports betting measure reflects growing concerns that they are falling well behind other states with legal sports betting in converting gambling funds into tax revenue.
Why It Matters
Since launching legal online sports betting in 2021, Wyoming’s market has grown steadily, but the tax returns haven’t kept pace. Despite generating over $645 million in total wagers and more than $66 million in operator revenue, the state has collected just $3.9 million in taxes, or roughly 5.8 cents on every dollar of operator revenue.
In national terms, Wyoming accounts for 0.12% of the amount of money bet on sports in the U.S. and 0.15% of national sportsbook revenue. Yet, its 0.04% share of tax revenue puts it near the bottom of the pack.
Annual data highlights the issue. In 2024 alone, Wyoming sportsbooks recorded $209.6 million in handle and $22.8 million in revenue, yet the state collected just $1.4 million in taxes.
| Year | Handle | Revenue | Hold % | State Tax Revenue |
|---|---|---|---|---|
| 2022 | $144.5M | $14.8M | 10.23% | $843,171 |
| 2023 | $172.2M | $17.3M | 10.04% | $1.06M |
| 2024 | $209.6M | $22.8M | 10.88% | $1.4M |
| 2025* | $78.9M | $7.9M | 10.06% | $479,230 |
- 2025 figures through April 30.
Compare that to states with similar overall betting volume: Maine has collected over $9.1 million in taxes, while Montana has received $4.7 million. Both have lower or comparable handle and revenue totals. Even states like Vermont and Delaware outperform Wyoming in tax efficiency.
Lawmakers argue that Wyoming’s minimal regulatory burden and low overhead have created a favorable environment for legal online sportsbooks – one that should now return more to the state’s general fund.
The proposed 20% rate is currently a placeholder as lawmakers draft formal legislation. The bill will be debated in upcoming sessions, with possible amendments before it reaches a final vote. If approved, it would mark a major shift in how Wyoming treats online sports betting and a significant move to align the state’s tax take with its market output.
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