This week's sports gambling industry round-up will have an unfortunate and unplanned theme: tax increases. Both Louisiana and Wyoming are looking to increase tax rates on sportsbooks.
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You've also got a lot of action in New Jersey as a flood of parties try to have prediction markets offering sports event contracts stopped.
Wyoming Proposes Doubling Tax Rates
The Select Committee on Capital Financing & Investment is looking to push the tax rate up from 10% to 20% in the Cowboy State. A move that would push it from one of the least taxed states to about average in the US.
State Senator and Committee Chair Tara Nethercott rationalized the increase as fixing the state's "generosity" towards sportsbooks since legalizing sports gambling in 2021:
 | "I think the state of Wyoming has been quite generous to the players in this space, giving them almost exclusive access to the market, in a proliferated rate, having infiltrated every block of all our communities." -Wyoming Senator Tara Nethercott |
In 2024, sports gambling brought in $1.4 million in tax revenues. So far this year, Wyoming has seen a 19% YoY increase in tax revenues through Q1, thanks to handle jumping a proportional amount. Doubling the tax rate might capitalize on rising gambling trends across the state.
Louisiana Signs Law To Increase Tax Rates
While Wyoming is debating taxes, Louisiana signed a bill to change rates from 15% to 21.5%. On Tuesday, Governor Jeff Landry signed HB 639, which increases tax rates and creates a fund for D1 universities.
The bill faced little opposition in either chamber, with 83% support in the House and 92% support in the Senate. It's not hard to see why. In 2024, Louisiana brought in $65 million in tax revenues on that former tax rate; increasing rates could tax revenues eclipse $100 million.
That additional $35 million will help close Louisiana's $300 million budget deficit.
New Jersey Bound For Prediction Market Fight
Everyone is descending upon New Jersey for Kalshi vs the New Jersey Division of Gaming Enforcement (DGE). To date, four separate amicus briefings have been filed in support of the DGE's position that Kalshi's sports event contracts should not be traded in the state.
Anti-gambling groups led by Stop Problem Gambling were the first to file, followed by an impressive list of 40+ tribes and nine tribal groups. A few days later, 34 attorneys general and the Casino Association of New Jersey joined in with their briefings! Truly an impressive list of plaintiffs.
You can read all about what each party is arguing in the case against Kalshi in New Jersey here.
