Wyoming Gambling Tax Talks Collapse Amid Fierce Disagreements
UPDATE: A critical meeting of the Wyoming legislative panel ended abruptly on Tuesday amid intense disagreements over proposed changes to gambling taxation. The Select Committee on Capital Financing and Investments was set to explore four draft bills aimed at reshaping the state’s gaming industry tax structure but collapsed after heated discussions.
The committee’s agenda included plans to increase taxes on online sports betting and skill-based amusement games, with expectations to generate nearly $3 million annually to support addiction prevention programs. However, tensions flared when Rep. John Bear, a prominent member of the Wyoming Freedom Caucus, attempted to terminate the meeting after the first bill failed to gain traction. This bill sought to establish a centralized system under the Wyoming Gaming Commission for monitoring gambling activities.
Despite support from Senate members, House opposition stalled the bill’s progress. Sen. Tara Nethercott, the committee chair, expressed her frustration, emphasizing that the refusal to engage in discussions wasted valuable legislative resources. She cautioned that Wyoming risks losing control over a booming industry if legislative action is not taken promptly.
One of the most contentious proposals aimed to double the tax on sports betting income from 10% to 20%. Advocates argued this increase could significantly enhance state revenue, while critics, including Sarah Filosa from the Sports Betting Alliance, warned it could backfire, pushing bettors towards illegal offshore options due to diminished promotions and worse odds.
The debate intensified when Nethercott questioned the hefty advertising expenditures of major gambling companies like FanDuel and DraftKings. She suggested that these companies should prioritize customer protection over lobbying efforts.
In a surprising turn, Senator Gary Crum proposed pausing the tax legislation to collect more data. This suggestion effectively ended the proposal, as the committee did not schedule any further meetings before the next session. A motion to reconvene before February was also defeated.
Bear remained steadfast in opposing tax increases, arguing against the state’s reliance on gambling revenue. He claimed that some legislators prioritized financial gain over the potential dangers of increased gambling activity. Nethercott countered that the committee’s role is to manage current funds rather than create new revenue streams.
As the session concluded, two additional proposals were left unaddressed: one aimed to raise taxes on skill-based games to 25%, and another sought to redirect funds from historic horse racing bets to the highway fund. These issues may surface again in the 2026 session, but their future remains uncertain, especially in a budget year.
The fallout from this meeting raises significant questions about the future of gambling taxation in Wyoming. As discussions remain stalled, the implications for state revenue and public welfare continue to develop. Stay tuned for updates as this situation evolves.
