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Proposal to double online sports‑wagering tax to 20% fails after industry opposition
Summary
The committee considered a draft to raise Wyoming's online sports‑wagering tax from 10% to 20% but, after industry testimony warning of consumer migration to illegal offshore sites and extended committee debate, the roll‑call vote failed and the draft did not advance.
The Select Committee on Capital Financing & Investments debated a bill draft proposing to increase the online sports‑wagering tax from 10% to 20% (26 LSO 0 129) and heard industry testimony warning of economic and consumer‑protection consequences.
LSO staff said that, based on 2024 collections, a shift from 10% to 20% could generate roughly an additional $1.4 million annually to state coffers. Representative Nicholas moved the draft forward; public testimony included a detailed opposition presentation by Sarah Flosa on behalf of the Sports Betting Committee (representing regulated operators such as FanDuel, DraftKings and others).
Flosa said legal operators have thin margins and rely on promotions and favorable odds to attract players; she argued doubling the tax would force operators to reduce promotions or worsen odds, which could send players back to unregulated offshore sites. "If you double the tax rate, those thin margins disappear almost entirely," she told the committee.
Committee members pressed industry witnesses about whether taxes materially affect odds and about marketing and responsible‑gaming practices. Industry witnesses described geolocation tools, in‑platform checks and interventions for customers with changed betting behavior; they requested more detailed state‑level data before evaluating the tax change.
After debate the committee held a roll‑call vote on the measure. The motion failed in committee (senate side recorded 1 yes, 5 no; house side recorded 2 yes, 4 no), and the draft did not advance. The committee then adjourned for the day.
Because online sports wagering is a newer market in Wyoming, committee members expressed differing views on whether the state should align its tax rate with peers and how to weigh short‑term revenue against long‑term market development and consumer protection.
The committee did not adopt the 20% tax proposal; members noted additional analysis and data would be required to change current law.
