Wyoming Committee Leaves Gambling Tax Talks After Clash Over Revenue Plans

The Select Committee on Capital Financing and Investments had scheduled discussions on four draft measures aimed at reshaping the state’s approach to taxing the gambling sectoImage Source: Shutterstock.com

A Wyoming legislative panelended its meeting early Tuesday when strong disagreements about suggested changes to gambling taxation led lawmakers to a standstill.

Wyoming Gambling Tax Talks Collapse After Freedom Caucus Blocks Key Bill

The Select Committee on Capital Financing and Investmentsplanned to look at four draft bills to change how the state taxes the gaming industry. Ideas included hiking taxes on online sports betting and skill-based amusement games. They also wanted to move some of the betting money into the state highway fund and programs to help people with gambling problems.

The meeting fell apart when Rep. John Bear, R-Gillette, a key member of the Wyoming Freedom Caucus,tried to end it after the first bill failed, reported the Wyoming Tribune Eagle. This bill aimed to set up a central system under the Wyoming Gaming Commissionto monitor all gambling activities. Even with Senate backing, some House members stopped the bill from moving ahead.

Committee Chair Sen. Tara Nethercott, R-Cheyenne, expressed her annoyance at the deadlock. She said refusing to discuss all the bills wasted both time and legislative resources. She also warned that if the state does not act, it might lose control of a growing industry.

One of the more debated ideas suggested raising the tax on sports betting income from 10% to 20%. This change could bring in almost $3 million each year, with some money set aside to help prevent addiction. People in the industry disagreed. Sarah Filosa,speaking for the Sports Betting Alliance, said higher rates would end up hurting players. She argued it would lead to fewer promotions and worse odds, which might push bettors to use illegal offshore websites.

Push to Raise Gaming Taxes Falters After Disputes Over Advertising and State Revenue

Nethercottquestioned why companies like FanDuel, DraftKings, and BetMGM spend so much on advertising in the state. She suggested they should put more money into protecting customersinstead of trying to influence lawmakers.

Senator Gary Crum, a Republican from Laramie, proposed putting the tax bill on hold to gather more data. However, since no more committee meetings were planned before the next session, this move killed the proposal. A vote to meet again before February did not pass.

Bearstood firm in his stance against any attempts to raise gaming taxes. He said he did not want the state to become reliant on money from gambling. He claimed some of his colleagues cared too much about the cash and not enough about the dangers. Nethercottargued back that the committee’s job was not to create new sources of income, but to handle existing funds, like other states do.

When the session ended, two more proposals were left untouched. One aimed to boost taxes on skill-based games to 25%, while the other wanted to shift some money from historic horse racing bets to the highway fund. Lawmakers might still bring these up on their own in the 2026 session, but such bills often struggle more in a budget year.