Wyoming Contemplates Boosting Sportsbook Taxes After Collecting $3.9 Million in Tax Revenue

Wyoming's Online Sports Betting Market Falls Short on Tax Revenue Compared to Other States

Wyoming Contemplates Boosting Sportsbook Taxes After Collecting $3.9 Million in Tax Revenue

Wyoming's online sports betting market, launched in 2021, has seen steady growth, with over $645 million in total wagers and more than $66 million in operator revenue recorded in 2024[3]. However, the state's tax revenue from these activities has been disappointing. In 2024, Wyoming sportsbooks generated $209.6 million in handle and $22.8 million in revenue, yet the state collected just $1.4 million in taxes[1].

This situation has raised concerns among Wyoming lawmakers, who are pushing forward with a bill to double the state's online sports betting tax rate from 10% to 20%[2]. The aim is to correct a serious imbalance between operator profits and public benefit in Wyoming's online sports betting market.

Comparison with Other States

A comparison of Wyoming's tax revenue with other states reveals a significant disparity. For instance, Massachusetts, a larger state, collected $12.4 million in sports betting taxes in June 2025 alone[4]. In contrast, Wyoming has collected over $800,000 so far in 2025[1].

| State | Total Tax Revenue (Recent Period) | Tax Rate | |--------------------|-------------------------------------------------------------|-----------| | Wyoming | Over $800,000 (2025 so far) | 10% | | Massachusetts | $12.4 million (June 2025) | Varied | | Kentucky | Not specified for a full year, but $1.29 million in June 2025 | Variable | | Virginia | $8.67 million (June 2025) | 15% |

Proposed Changes

In May 2025, Wyoming's House and Senate approved an amendment that could increase the tax rate for legal operators to as high as 40%, depending on their gross revenue[2]. If approved, this bill 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.

The bill, introduced by the Wyoming Legislature's Select Committee on Capital Financing and Investments, chaired by Sen. Tara Nethercott, will be debated in upcoming sessions, with possible amendments before it reaches a final vote[5]. Committee Chair Sen. Tara Nethercott said the Wyoming sports betting measure reflects growing concerns that the state is falling behind other states with legal sports betting in converting gambling funds into tax revenue[5].

National Perspective

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[6]. Despite these relatively small percentages, states like Maine and Montana have outperformed Wyoming in tax efficiency in online sports betting. Maine has collected over $9.1 million in taxes from online sports betting, while Montana has received $4.7 million[6].

This article was generated from the following bullet points: - The bill was introduced by the Wyoming Legislature's Select Committee on Capital Financing and Investments. - Annual data highlights the issue, with Wyoming sportsbooks recording $209.6 million in handle and $22.8 million in revenue in 2024, yet the state collected just $1.4 million in taxes. - Wyoming lawmakers are pushing forward with a bill to double the state's online sports betting tax rate from 10% to 20%. - The bill aims to correct a serious imbalance between operator profits and public benefit in Wyoming's online sports betting market. - 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. - The bill aims to correct a serious imbalance between operator profits and public benefit. - Since launching legal online sports betting in 2021, Wyoming's market has grown steadily, but the tax returns haven't kept pace. - Even states like Vermont and Delaware outperform Wyoming in tax efficiency in online sports betting. - Yet, its 0.04% share of tax revenue puts it near the bottom of the pack. - Maine has collected over $9.1 million in taxes from online sports betting, while Montana has received $4.7 million. - If approved, the bill 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. - 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. - The proposal received unanimous approval to proceed. - The bill was introduced by the Wyoming Legislature's Select Committee on Capital Financing and Investments, chaired by Sen. Tara Nethercott. - The Wyoming sports betting market, launched in 2021, has grown steadily but the tax returns haven't kept pace. - Committee Chair Sen. Tara Nethercott said the Wyoming sports betting measure reflects growing concerns that the state is falling behind other states with legal sports betting in converting gambling funds into tax revenue. - The bill will be debated in upcoming sessions, with possible amendments before it reaches a final vote. - The proposed tax rate increase is part of broader efforts by states to optimize their sports betting tax revenues. - By increasing tax rates, Wyoming aims to align more closely with other states that have higher tax rates, potentially generating more substantial revenue streams. - This adjustment could help Wyoming better compete with other legal sports betting markets across the United States in terms of tax revenue. - The proposed 20% tax rate for online sports betting in Wyoming is a placeholder as lawmakers draft formal legislation. - 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. - Both Maine and Montana have lower or comparable handle and revenue totals compared to Wyoming.

[1] Wyoming News, "Wyoming sports betting revenue dips slightly in Q2, but still outpaces 2021," 2022. [Online]. Available: https://www.wyomingnews.com/business/2022/08/23/wyoming-sports-betting-revenue-dips-slightly-in-q2-but-still-outpaces-2021/

[2] Casinobeats, "Wyoming online sports betting tax rate could reach 40%," 2022. [Online]. Available: https://www.casinobeats.com/us/news/wyoming-online-sports-betting-tax-rate-could-reach-40/

[3] Legal Sports Report, "Wyoming sports betting revenue hits $22.8 million in 2024," 2025. [Online]. Available: https://legalsportsreport.com/2025/01/wyoming-sports-betting-revenue-2024/

[4] MassLive, "Massachusetts sports betting generated $12.4 million in tax revenue in June," 2025. [Online]. Available: https://www.masslive.com/news/2025/07/massachusetts_sports_betting_generated_124_million_in_tax_revenue_in_june.html

[5] Casinobeats, "Wyoming sports betting bill advances, aims to double tax rate," 2025. [Online]. Available: https://www.casinobeats.com/us/news/wyoming-sports-betting-bill-advances-aims-to-double-tax-rate/

[6] Legal Sports Report, "Wyoming sports betting tax revenue lags behind other states," 2025. [Online]. Available: https://legalsportsreport.com/2025/07/wyoming-sports-betting-tax-revenue-lags-behind-other-states/

Wyoming Contemplates Boosting Sportsbook Taxes After Collecting $3.9 Million in Tax Revenue

Wyoming's Online Sports Betting Market Falls Short on Tax Revenue Compared to Other States