Wyoming is set to revisit the possibility of legalizing online casino gaming in 2025 after a favorable study from Spectrum Gaming Group. Representative Robert Davis, who spearheaded the initiative, intends to refile legislation based on the study results. A recent PlayUSA report revealed that the study showed iGaming has significant potential to raise millions of dollars in revenue without negatively impacting existing gambling operations in the state.
Financial Projections Appear Promising
The Spectrum Gaming Group study, as presented to the Wyoming Gaming Commission, provided a detailed analysis of the economic benefits that online casinos could bring to the state. This report suggested that iGaming revenues could range between $93 million and $138 million in its first year in operation, growing to around $162 million to $199 million annually by the end of year five.
The tax benefit projections for the state were equally compelling at $20 million to $30 million for the first year, increasing to $40 million by year five. Crucially, the study emphasized that online gambling tends to complement, rather than compete with, traditional gambling activities, addressing significant concerns about cannibalization.
The iGaming portion doesn’t support any cannibalization, and it looks to be relatively easily implemented based on the things the state of Wyoming currently has going for it.
Representative Robert Davis
The current Wyoming gambling market is diverse but modest, featuring online sports betting that went live in 2021, three tribal casinos, charitable gaming, historical horse racing facilities, and skill-based amusement games found in bars, truck stops, and smoke shops. Since its launch, Wyoming’s sports betting market has taken in $518 million in wagers, producing $54.6 million in revenue and yielding $3.2 million in taxes to the state.
The Legislation Faces an Uphill Battle
Encouraged by the state’s experience regulating online sports betting, Rep. Davis remains optimistic about Wyoming’s ability to manage an expanded iGaming framework. He will introduce a bill in December 2024 to bring the proposal to the legislature in early 2025. Davis acknowledged that the bill’s passage would depend on lawmakers’ sentiments, but he believes the study provides compelling evidence for moving forward.
I plan on going ahead and introducing it. Hopefully, we can get action on both sides of the chamber and get it going. What the appetite will be, I’m not sure.
Representative Robert Davis
Commercial gaming industry stakeholders generally support legalized iGaming, highlighting that many players currently gamble on unregulated sites with inadequate customer protections or travel to other states, depriving Wyoming of tax revenue. However, tribal representatives remain apprehensive, fearing that the Spectrum study may not capture iGaming’s full impact on tribe-owned casinos.
Despite the promising financial projections and industry support, Davis acknowledged that Wyoming’s historically conservative stance on gambling could present challenges. The proposal will need to gain traction in both chambers of the legislature and win over various stakeholders. If approved, this measure could transform the state’s gambling landscape, bringing substantial economic benefit to its residents.
