As the lucrative sports gambling industry continues to bring in more money each year, legislators are increasingly hawkish on raising taxes on wagers and total gaming revenue. Wyoming is the next victim in this craze, with a proposal recently introduced that would double the current sports betting tax rate from 10% to 20%.
The Select Committee on Capital Financing and Investments also recommended raising taxes on skill-based gaming and historic horse racing. Committee Chair Sen. Tara Nethercott said the move is necessary to “improve oversight and return more revenue to the state.” She defends the rate hikes as it will bring Wyoming in line with the national average of approximately 19%.
Aiming for average is simply lazy policymaking.
At just under 600,000 residents, Wyoming is the least-populous state in the country. Its remote geography and small market size mean it must compete aggressively for private-sector participation. Low taxes are a necessity to attract and sustain a functioning digital marketplace in states like Wyoming.
Since launching legal sports betting in 2021, Wyoming has rightly embraced a low-tax, mobile-first model that respects market dynamics and consumer freedom. The current 10% tax on gross gaming revenue has helped attract licensed operators, create economic opportunities, and channel gambling away from the black market, all without overburdening an industry that thrives on slim margins and consumer engagement.
Interest groups in Wyoming have spoken out against the harmful tax increase. The Sports Betting Alliance and Cowboy Skill LLC both warn that the measure will increase competition from offshore platforms and stifle consumer’s ability to engage in the legal market. There is certainly a balance between access and accountability. However, these testimonies support what data suggests, non-targeted tax hikes are punitive and lack effective results.
Americans for Tax Reform strongly opposes this tax hike and urges Wyoming lawmakers to hold the line against short-sighted revenue grabs. The state’s sports betting framework was designed to be broad and pro-growth. That model is working. Doubling the tax would turn a winning bet into a self-inflicted loss.
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Author: Landon Epperson
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