Wyoming Sports Betting Revenue, Handle and Taxes

Wyoming Sports Betting Revenue

In April of 2021, online and mobile sports betting was written into the law of the state of Wyoming. Upon the writing of the new bill, online sports betting kicked off in September of 2021. DraftKings and BetMGM were the first two sportsbooks to join the WY sports betting era, while FanDuel and Caesars soon followed suit. There are many other sportsbooks who are likely to join WY such as Bet365.

Since the conception almost two years ago, Wyoming sports betting revenue has been growing at a steady pace. In the first month, WY saw over $995,000 USD in GGR (gross gaming revenue). The highest GGR reported was October of 2022, with a total of over $2,000,000 USD. Impressive results of Wyoming sports betting revenue is due to the presence of four major sportsbooks including DraftKings, BetMGM, FanDuel and Caesars. Since the legalization of WY online sports betting in September 2021, to the most recent calculation of May 2023, the overall Wyoming sports betting revenue is $25,902,764.

Wyoming Sports betting revenue by sport is an important aspect to analyze trends. Other than Wyoming’s first month of online sports betting, WY saw the least amount of wagered funds during June and July of 2022. Reports for June of 2023 are not currently released, but during these months, the NHL, NBA, and NFL are all in the offseason, which is a major chunk of sports betting revenue. The same can be said for NCAA football. These months bring the midseason of the MLB season, but one major sports league is not enough to carry a high revenue stream. Many other factors come into play for the WY revenue such as a lack of local teams, and Wyoming sports betting taxes.

Wyoming Sports Betting Taxes

A contributing factor to the financial results of sports betting in WY is Wyoming sports betting taxes. Online sports bettors are highly inclined to keep as much of their profits as possible, so a topic such as this could make or break the popularity of sports betting in a state. As given by the American Gaming Association, the Wyoming sports betting tax rate currently sits at 10% of all GGR. However, Wyoming Sports Betting taxes come with reduced tax pressure as they are permitted to eliminate free wagers, promotional play and the 0.25 percent federal excise tax on handle.

The average tax rate in US sports betting is 19%, so the Wyoming sports betting tax rate is an attractive rate for online sports bettors. When comparing WY to 25 other counterparts, there are only five states that have a lower tax rate than WY (Indiana, Iowa, Kansas, Michigan and Nevada). There are eight states that charge at least a 20% tax rate, and there are even some states that charge a tax rate as high as 51%. While WY may not be one of the biggest names in the online sports betting industry, they have been very effective and can be attractive when the WY population compares these numbers to others.

Wyoming Sports Betting Handle

Sports betting handle refers to the total amount of money that has been wagered by a specific population. The most recent Wyoming sports betting handle came in at $12,700,000 USD for the month of May, which is an increase of over $100,000 USD from the previous month. As previously stated, the impressive quality of sportsbook offerings like DraftKings, BetMGM, FanDuel and Caesars make online sports betting a hot commodity in WY. In 2023, the Wyoming sports betting handle has been consistently at an amount over $11,500,000 USD, with the highest total coming in at over $14,750,000 USD during the month of March. However, the Wyoming sports betting handle was not always this high, as the total from this previous March was only reached two other times during this 21-month presence. Wyoming sports betting handle results are on the rise, which in turn will likely increase the Wyoming sports betting hold percentage

Since the legalization of online sports betting in September of 2021 to the most recent calculation of May of 2023, the overall Wyoming sports betting handle is $250,977,058. Their largest handle result since the legalization was $17,275,317, which took place in October of 2022. While these are significant numbers, WY is not yet at the level as many counterparts in the U.S. This is likely due to the lack of professional sports teams in the area, as well as a much lower population. These numbers are crucial, and play a major role in other statistics such as Wyoming sports betting hold and Wyoming sports betting handle per capita.

Wyoming Sports Betting Handle Per Capita

When analyzing sports betting statistics such as revenue and handle, it is likely that the states with high populations are going to own and dominate the results. However, these are skewed numbers due to major population differences in each and every state. That is where a state like WY may fall under the radar with low numbers, but they may really be performing well.

Wyoming has a population of nearly 585,000 people, but a state such as Ohio has a population of more than 11,500,000 people. Sticking with the Ohio example, let’s take a look at the sports betting handle per capita. In May of 2023, WY finished the month with a handle of nearly $12,800,000 USD. The Wyoming sports betting handle per capita would be calculated by dividing the handle by the population. In this case, the Wyoming sports betting handle per capita would be $21.88 per person. As for Ohio, which had a handle of almost $450,000,000 in May of 2023, its sports betting handle per capita calculates to $39.13 wagered per person. Wyoming sports betting handle per capita will typically be lower than such a high populous and sport-driven area like Ohio, but using this metric will prove that Wyoming is making a presence. 

Wyoming Sports Betting Hold

Sports betting hold refers to the percentage of money that a sportsbook keeps for every dollar that has been wagered by users. Wyoming sports betting hold percentage is averaging 10.75% in the year 2023, which is +0.55% from the 2022 average. Wyoming and their sports betting platforms are keeping almost 11% of wager funds from bettors, which is a very high total compared to the overall average of 9.05% with all states included. This is a similar story as in 2022, as the 10.20% Wyoming sports betting hold percentage was well above the industry average of 8.10%. WY joins a short list with Delaware, Louisiana, Maryland, Montana, Ohio, Oregon and South Dakota, with 2023 hold averages over 10.72%.

While this shows great efficiency of revenue held, it can also come across as risky to the WY population. They may refrain from wagering often and at high amounts, because the percentages may not be in their favor as opposed to other states. This is especially true if WY has a high tax rate, but Wyoming sports betting taxes are quite attractive. Since 2018, the industry hold average has never surpassed a total of 10% for an entire year, but the average is increasing at a steady pace. It seems likely that the Wyoming sports betting hold average and industry average will be closer in the years to come.