Gambling Tax Overhauls Across US States: An Update
Wyoming contemplates increasing tax on online sports betting.
Wyoming stirs the pot in the gaming world, proposing a shake-up in taxes for online sportsbooks, skill games, and historical horse racing operations. These changes, tabled by the Select Committee on Capital Financing and Investments, aim to boost revenue collections in line with the growing gambling industry within the state.
Senator Tara Nethercott, chairing the committee, pushes for greater operator contributions. She notes that Wyoming has been somewhat generous to the gambling sector, offering minimal oversight and low tax rates. As gambling flourishes in every corner of the state, it's high time the revenue collections catch up to the industry's scope.
Here's a quick look at the proposed tax hikes:- Sports betting: The 10% tax could double to 20%- Skill-based games: Current 20% tax might climb to 25%- Historical horse racing: Tax rate may escalate from 1.5% to 2.5%
But what's happening elsewhere? Illinois, Louisiana, and Maryland are also implementing tax reforms.
Illinois: folded its sleeves and kicked up the sports betting tax rate from 15% to 20%, joining the league of states reconsidering bettors' contribution to state coffers amid market expansion.
As for Louisiana and Maryland, our search didn't uncover any fresh tax reform proposals as of June 2025.
Wyoming's gambling market took flight in September 2021. Post-launch, the state raked in $3.8 million from online betting tax collections. By 2024, close to $25 million flowed into state coffers from 16 vendors operating across various formats. Further regulatory efforts are underway to impose a money-monitoring system for gaming machines to heighten oversight and revenue verification.
[1] Tax Foundation: Analysis of the State and Local Tax Burden for 2024[2] The Wyoming Tribune Eagle: Gambling tax bill going back to committee for work[3] The Casper Star-Tribune: Lawmakers considering a tax hike for gambling in Wyoming[4] Sports Handle: Wyoming Lawmakers Consider Doubling Sports Betting Tax Rate - Report[5] Legal Sports Report: Wyoming Gambling Tax Bill Would Boost Revenue, but Other States Do Better
In the context of broader tax overhauls in US states, the proposal in Wyoming aims to increase taxes for sports betting, skill games, and historical horse racing operations, as part of efforts to align revenue collections with the growing gambling industry. Illinois has also boosted its sports betting tax rate, mirroring similar moves across states to reconsider bettors' contributions amid market expansion.
