Wyoming Ventures into Online Casino Legislation

09.02.2024

In an unexpected move, a group of Wyoming legislators introduced a bill earlier this week aimed at legalizing online casino gaming.

Spearheaded by Representatives Jon Conrad, Robert Davis, Sandy Newsome, and Tom Walters, House Bill 120 seeks to bring “interactive gaming” under the regulatory purview of the Wyoming Gaming Commission. This initiative follows the successful 2021 legislation led by Walters that legalized online sports betting and fantasy sports within the state, welcoming industry giants such as DraftKings, FanDuel, Caesars, and BetMGM.

Regulatory Framework and Taxation

The proposed bill outlines a regulatory framework that allows individuals aged 18 and above to engage in online gambling, with operators subject to a 10% tax rate.

A maximum of five interactive gaming operator permits would be issued, each accompanied by an initial fee of $100,000 and a five-year renewal fee of $50,000.

Additionally, vendor permits would require an initial fee of $10,000, with a $5,000 renewal fee every five years.

Operator Eligibility and Reciprocity

A notable requirement of HB 120 is that potential operators must already be actively and in good standing in at least three other states to qualify for a permit in Wyoming. The bill also allows for reciprocal agreements between Wyoming and other jurisdictions, facilitating a broader network of interactive gaming operations.

A significant aspect of the bill is its commitment to addressing problem gambling, with a mandate that $300,000 of the annual tax revenue generated from online casino gaming be allocated to programs dedicated to this issue. This provision underscores the state’s acknowledgment of the potential risks associated with gambling and its dedication to responsible gaming practices.

Our Comment on the Article

The introduction of House Bill 120 marks a significant development in Wyoming’s gambling landscape, potentially setting a precedent for other states considering similar legislation.

The bill’s focus on regulatory oversight, operator eligibility, and support for problem gambling programs highlights a balanced approach to the expansion of online casino gaming.

As Wyoming navigates the complexities of this legislative process, the outcome could have far-reaching implications for the future of online gambling in the state and beyond.