Wyoming lawmakers look set to double the state’s online sports betting tax from 10% to 20%, a move which would bring it in line with other US states.
BonusFinder.com, a leading casino bonus and review site has delved into why the state is suggesting the increased tax hike and how it compares to other states.
As well as doubling the sports betting tax, the legislative committee wants to increase taxes on skill-based gaming from 20% to 25% and horse wagering from 1.5% to 2.5%.
The Select Committee on Capital Financing & Investments Chair, Tara Nethercott, stated: “I think the state of Wyoming has been quite generous to the players in this space, giving them almost exclusive access to the market, at a proliferated rate, having infiltrated every block of all our communities.
“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.”
This comes after news that in May of this year, sports betting revenue in the state increased by 20% to $15m – with DraftKings taking a large percentage of that amount.
News of the increased taxes on the industry has been met by criticism by those who work in it. Nathan Click – Spokesperson for the Sports Betting Alliance – fears the move might push players to the black market.
“Customers in states that have raised sports betting taxes wind up with a more costly sports betting experience – from worse promotions to decreased payouts,” argued Click.
“These types of changes also make legal sports betting products less able to compete against illegal and offshore sports betting operators that pay zero in taxes but are widely available online to bettors in Wyoming.
“However, we look forward to collaborating with the legislature and educating members on our business.”
Is 20% tax too much?
The proposed 20% tax is a relatively standard rate when compared to other states who have legalised gambling in the United States. In fact, the country’s biggest sports betting market is New York which has a tax rate of 51%.
Gambling’s growth in the state does come at a cost though, including its citizens potentially developing problems with gambling habits so the tax revenue is needed to help foster those issues and safeguard the community as much as possible.
In relation to looking after its citizens, the state has a program, which began in 2021, that allows people to self-exclude themselves from gambling if they feel like it’s getting out of control – but only 20 people have exercised that option.
That number, which was revealed by Wyoming’s Gaming Commission’s responsible gaming liaison Sara Beth Lyon, comes in spite of her team dealing with more and more callers every day.
This summer, they will launch a study to better diagnose how many problem gamblers there are in the state. Once we have a better understanding of that figure, we’ll be in a better position to see if the states proposed increased tax revenues are worth it.
The funding to run helplines is increasing, so the proposed rise in taxes make sense. It remains to be seen whether the state’s exponential growth in gambling revenue will slow down drastically should the tax rises be implemented.
