Wyoming Considers Online Casino Legislation for 2025

Wyoming is on the cusp of considering legalized online casino gaming, spurred by a recent Spectrum Gaming Group study that highlights its economic potential. Representative Robert Davis announced plans to refile online casino legislation for 2025, banking on data that projects significant revenue without disrupting existing gaming markets.

The Spectrum Gaming study, presented to the Wyoming Gaming Commission this week, projects online casino revenues of $93 million to $138 million in its first year, potentially rising to $199 million by year five. This growth could yield state tax revenues of $20 million to $30 million in year one, escalating to $40 million by year five. Importantly, the study asserts that iGaming complements rather than cannibalizes traditional gaming sectors. Spectrum cited Michigan's market, where online gaming expanded alongside tribal and commercial casinos without significant harm to brick-and-mortar operations.

 

The Current iGaming State

Wyoming’s current gaming ecosystem includes online sports betting, tribal casinos, charitable gaming, racetracks with historical horse racing, and skill-based amusement games. Steve May from Gaming Laboratories International noted that Wyoming's experience regulating online sports betting could ease the transition to iGaming. “If you do get iGaming, I think it will fall right in line with sports betting,” May said.

Despite the study’s optimistic outlook, tribal representatives raised concerns about iGaming's potential impact on their operations. Commissioner Jenni Wildcat of the Northern Arapaho Tribe pointed to her tribe's internal study, which suggested a negative impact on brick-and-mortar casinos. Spectrum Gaming’s Matt Roob countered by referencing Michigan’s tribal casinos, which did not see declines in revenue despite iGaming expansion. Wildcat remained skeptical, emphasizing the need to weigh tribal interests heavily in legislative discussions.

Rep. Davis acknowledged these concerns, expressing openness to discussions about tribal participation. “The tribes are going to be a critical component, there’s no doubt about that,” he said.

Davis plans to introduce the iGaming bill in December 2024 for consideration during Wyoming's 2025 legislative session. Unlike the short budget-focused sessions of even years, the 2025 session will allow for a more comprehensive legislative process. However, Davis cautioned that significant hurdles remain, including educating lawmakers and addressing public misconceptions. “Sports wagering has a lot more exposure than iGaming,” he noted.

The bill will initially mirror the version he filed earlier but will likely evolve through committee discussions and stakeholder feedback. Davis is optimistic that the Spectrum study will lend credibility to the proposal. “There’s always a need for additional revenue,” Davis said. “The study should help support the bill, give it some scientific factors behind it.”

 

The study shows that iGaming doesn’t steal revenue from land-based gaming but complements it, creating consumer protections and generating more tax dollars for the state.

 

The Future

Advocates like Jeff Ifrah of the iDevelopment and Economic Association argue that legalizing online casinos would provide safer, regulated options for Wyoming residents while generating tax revenue. “The highly pervasive illegal sites that Wyoming’s residents are already accessing pose significant risks to players and offer no tax revenue to the state,” Ifrah said.

As Wyoming navigates these discussions, the state could join the growing number of jurisdictions embracing iGaming as a modern revenue stream. The legislative session beginning January 14, 2025, will reveal whether Davis’ proposal gains the traction needed to become law.