Wyoming Panel Ends Gambling Tax Debate Amid Disagreements Over Revenue Plans
Wyoming Gambling Tax Discussion Breaks Down Over Revenue Dispute
A legislative panel in Wyoming abruptly ended its session early Tuesday due to significant disagreements concerning proposed changes to gambling tax policies. Lawmakers reached an impasse that halted further discussion.
Committee’s Proposal to Revise Gaming Taxes Faces Resistance
The Select Committee on Capital Financing and Investments was scheduled to review four draft bills focused on adjusting how Wyoming taxes the gaming industry. Proposals included increasing taxes on online sports betting and skill-based amusement games, alongside reallocating portions of the revenue to the state highway fund and gambling addiction support programs.
The meeting unraveled when Representative John Bear of Gillette, a member of the Wyoming Freedom Caucus, moved to end proceedings after the first bill failed to gain approval. This initial bill intended to establish a centralized monitoring system for all gambling activities under the Wyoming Gaming Commission. Despite backing from the Senate, opposition within the House blocked the legislation.
Committee Chair Senator Tara Nethercott, representing Cheyenne, expressed frustration over the stalemate. She criticized the refusal to consider all the proposed bills, calling it a waste of time and legislative effort. She also cautioned that Wyoming risks losing oversight of a rapidly expanding industry if action is not taken.
Contentious Tax Rate Increase on Sports Betting
Among the most debated changes was the suggestion to raise the tax on sports betting revenue from 10% to 20%. This increase could generate approximately $3 million annually, with some funds designated to address gambling addiction. Industry representatives raised concerns about this move, with Sarah Filosa of the Sports Betting Alliance warning that higher taxes could deter players by reducing promotions and offering less favorable odds, potentially encouraging bettors to turn to illegal offshore sites.
Disputes Over Advertising Spending and State Revenue Impact Proposal to Raise Gaming Taxes
Senator Nethercott questioned why major sports betting companies like FanDuel, DraftKings, and BetMGM heavily invest in advertising within the state rather than contributing more toward consumer protections. She suggested these companies prioritize safeguarding customers over lobbying efforts.
Senator Gary Crum, a Republican from Laramie, proposed delaying the tax legislation to collect additional data. However, with no further committee meetings scheduled before the next legislative session, this effectively stalled the bill. A motion to reconvene before February was also defeated.
Rep. John Bear remained steadfast in opposing any tax hikes on gaming, emphasizing his concerns that the state should not become financially dependent on gambling revenues. He accused some lawmakers of prioritizing revenue over the risks posed by gambling. Senator Nethercott countered by stating that the committee’s responsibility was to manage existing funds properly, similar to practices in other states, rather than creating new revenue streams.
Unaddressed Proposals Left for Future Consideration
The session concluded with two additional proposals still pending. One sought to increase taxes on skill-based games to 25%, while the other aimed to allocate a portion of historic horse racing betting revenue to the state highway fund. These bills may be revisited individually during the 2026 legislative session, although they typically face challenges in a budget-focused year.
