Lawmakers in Wyoming are looking to up the tax on several gambling activities over the coming months, as per an idea pitched by the Wyoming Legislature’s Select Committee on Capital Financing and Investments.
Wyoming Wants More Tax Proceeds to Address Consequences of Gambling Growth
Among the activities that the state wants to levy higher taxes on are online sports betting, which should double its rate to 20% from the current 10%. Skill-based games are going to only have to carry a 5% increase to 25% from the current 20%, and a 1% increase could affect historical horse racing, raising the level to 2.5% from 1% currently.
During a committee meeting, chair Tara Nethercott said that the honeymoon period was over, and that Wyoming has been generous enough to allow companies to get a foothold without overtaxing them. Now, though, the rates ought to be adjusted to be more realistic with what the state needs.
“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,” Nethercott explained.
Wyoming Not the Only State to Seek Tax Increase
She similarly noted that because of the gambling industry’s exponential growth, there has been an increased need for extra funds to lessen harms tied to this.
Earlier this year, Wyoming, through the gambling regulator, issued a statement, cautioning gamblers to steer away from illegal gambling websites, naming sweepstakes as such operators.
Wyoming would be joining Illinois in having recently suggested an increase of its gambling tax after Illinois passed a law that would see a mandatory $0.50 tax paid per every bet for any bet after the 20,000th. However, this new bill will most likely be passed on to gamblers.