Wyoming legislature considers doubling online sports wagering tax from 10% to 20%

Wyoming's gaming revenue landscape is under scrutiny as the Select Committee on Capital Financing and Investments convened to discuss the state's gaming revenue streams, including the lottery, skill-based amusement games, and online sports wagering. A key highlight from the June 12 meeting was the proposal to increase the state's share of online sports wagering revenue from 10% to 20%, a move aimed at aligning Wyoming's tax rates with those of neighboring states.

The discussion revealed that Wyoming's lottery, established in 2013, has generated approximately $40 million in gross gaming revenue, with local governments receiving only about 13 cents for every dollar played. This contrasts sharply with other states, where lottery revenues are typically split between general funds and education, often favoring the general fund with around 65% of total revenues.

In terms of skill-based amusement games, which were authorized in 2020, local governments receive a mere 2.5 cents for every dollar wagered. Since their inception, these games have contributed $11.7 million to the school foundation program and local governments. The committee noted that Wyoming's approach to gaming revenue distribution is unique, as it is the only state that dedicates lottery revenues exclusively to local governments.

The online sports wagering segment, authorized in 2021, has also been a focal point. Currently, Wyoming's tax rate of 10% on net revenues is significantly lower than the national average of 19%. The committee's motion to increase this rate reflects a growing recognition of the need to capture more revenue from this expanding market, especially as neighboring states maintain higher tax rates.

As the committee prepares for further discussions, including public comments, the implications of these proposed changes could reshape Wyoming's gaming revenue framework, potentially increasing funding for local governments and educational programs. The next meeting is anticipated to delve deeper into the fiscal impacts and stakeholder responses to these proposed adjustments.