Friday, December 13, 2024

Legalizing Online Gambling In Wyoming Could Rake In Nearly $900M, Study Says

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Wyomingites may soon be able to gamble from the comfort of their own homes if a state lawmaker gets his way.

Rep. Bob Davis plans to reintroduce HB120 this upcoming session after failing to pass the legislation earlier this year. The bill would legalize online slots, poker, blackjack and other card or gambling games and place those games under the scope of the Wyoming Gaming Commission.

Online gambling, or iGaming, could generate nearly $1 billion in the near future, according to a feasibility study about expanding gambling in Wyoming.

“The biggest thing is that it’s occurring illegally in the state of Wyoming,” he said. “And so, we need to do something to protect the wagering public, in my opinion. Then along with that comes some other benefits to the state.”

Davis’ decision to refile comes on the heels of that study, done for the Wyoming Gaming Commission by Spectrum Gaming Group of Linwood, New Jersey.

Illegal gambling operations have been popping up for years including a ring that was busted earlier this year involving a man and his employee who allegedly ran illegal online gambling operations out of coffee shops in Casper and Gillette and a vape store in Mills. 

“Wyoming appears to be in an enviable position to expand its gaming operations to include internet gaming should it decide to proceed with this endeavor,” the study says. 

Big Tax Boost

Davis said the study reinforces his perspective on gambling in the state.

“Wyoming has been very proactive. They did that with sports wagering, they did that with the games of skill,” he said. “They’re aware of what’s going on, and we need to act and get it under control.

“The other benefits from it would be a tax base. There seems to be large amounts in wagering, according to the different studies and stuff. Wyoming could use that tax money.” 

The study predicts iGaming has the potential to rake in between $704 million and $887 million in Wyoming over the next five years, with tax revenue estimates ranging between $141 and $177 million over the same period. 

Davis’s bill would require iGaming operators to remit 10% of their revenue to the Wyoming Gaming Commission. The first $300,000 the commission collects in revenue annually from iGaming would go toward funding county health programs to prevent and treat problematic gambling behavior. The remaining money would go to the state’s general fund.

Tribes Not So Sure

Online gambling could be a strong addition to Wyoming gambling, which is already more than a $1 billion-a-year industry

The state was one of the first to legalize online sports betting in 2021 and also allows horse racing, parimutuel wagering, charitable gaming and skills games. Wyoming is also home to a state-run lottery and four brick-and-mortar casinos managed by the Northern Arapaho and Eastern Shoshone tribes.

The study predicts that iGaming would not compete with those existing gaming operations. 

However, Wyoming Gaming Commissioner Jenni Wildcat said the Northern Arapaho Tribe has conducted its own study that suggests otherwise. 

“It shows a huge impact from iGaming on our brick-and-mortar properties in the negative,” Wildcat, a member of the Northern Arapaho Tribe, said during a recent commission meeting.  

Davis said he can’t say for sure what the impact would be on tribal casinos, but he believes iGaming could also be an opportunity for tribes. 

“If it’s occurring illegally in Wyoming, it’s occurring on the reservation illegally, and they’re missing all the, for lack of better word, tax revenue from it,” he said. “So, I think it would be a win win for both the state of Wyoming and the casinos on on the reservation. If we don’t legalize it, we can’t quantify the dollars that we’re losing.”

iGaming is legal in eight other states, mostly in the East and Midwest, with the exception of Nevada, which only offers internet poker. Other states, however, are considering legalizing the venture, including Hawaii, New York and Illinois

The bill also would require game operators to use geolocation systems to ensure that players are physically present in Wyoming. It would not impact online sports betting or other forms of gaming regulated by the Wyoming Gaming Commission. 

Davis expressed optimism about the bill’s chances once he introduces it. It is not yet listed among those filed for the 2025 session.

“I had good response last year,” he said. “We’ll see if I can get a little more and get it introduced to the committee for public comment, is what I’m hoping.”

(Getty Images)

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