Wyoming to consider tax hikes across the gaming sector

Wyoming lawmakers are set to deliberate over proposals to introduce tax increases across the gaming sector, as part of wide-ranging changes. 

The plans came to light following a meeting of the Legislature’s Select Committee on Capital Financing and Investments, in response to increasing concerns about the impact of gambling in the Cowboy State. 

There is a perception that gaming has exploded in prominence in recent times, leading to the draft proposals that would include a money-monitoring system in gaming machines across the state, in bars, gambling halls, and truck stops.

Wyoming committee members have penned draft legislation that would: 

• Double the online sportsbook wagering tax up from 10% of revenues to 20%.
• Hike the 20% tax on net proceeds of skill-based games to 25%.
• Change the historic horse racing tax from 1.5% to 2.5% (not including the 0.4% held for the breeder’s fund).
• Introduce a central ‘money monitoring’ system to track revenues for state tax requirements, to be overseen by a third party.

A Wyoming legislative committee proposed three tax hikes this week on multiple gaming industries. It also plans to insert a money-monitoring system into gaming machines across Wyoming bars, casino-style halls and truck stops.https://t.co/AalPqbRyvb

— Cowboy State Daily (@daily_cowboy) June 14, 2025

Proponents have insisted that the time is right to update the framework and turn the relevant levers to extract more from the gaming industry.

One of the leading backers of the proposals is the committee chair Tara Nethercott who said during the hearing: “I think the state of Wyoming has been quite generous to the players in this space,” in reference to skill-based games, “giving them almost exclusive access to the market, in a proliferated rate – having infiltrated every block of all our communities.”  

In a further explanation given to the Cowboy State Daily, Nethercott added that the proposed increases on the table are consistent with industry standards in comparative states.

She noted that gaming “has benefitted from modest regulation and little oversight,” and “as the industry has grown exponentially in recent years, Wyoming needs to establish enhanced oversight and revenues to match the growing needs from impacts in our communities.”

Conversely, critics have slammed the plans, warning that the tax hikes will be harmful to local businesses and jobs, as well as risking the competitive position of approved operators that pay tax in Wyoming.

Jonathan Downing, representing the Cowboy Skill LLC game provider, told the Daily: “If the Wyoming Legislature passes this tax increase, it would make Wyoming’s tax rate (on these games) one of the highest in the country,” 

He pointed out the particular impact on small local businesses and fraternal clubs, where the skill games make an important contribution to revenues and are legislated for in groups of no more than four machines side by side.

Another interesting revelation from the committee hearing was the testimony of a state Department of Health official who confirmed there was no existing provision in place for users experiencing gambling related-harm or addiction issues. 

Senator Nethercott responded that she expects that situation to change soon.

Image credit: WyomingStateBar/X

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