Wyoming legal icasino bill stalled in committee

Wyoming Committee Holds Discussion on Legalizing iGaming, Motion Fails to Gain Support

In a recent meeting, the Wyoming Travel, Recreation, Wildlife, and Cultural Resources Committee engaged in an extensive, yet inconclusive, dialogue regarding House Bill 162, which proposes the legalization of statewide online gambling. Representative Cathy Connelly brought forth a motion to advance the bill; however, it failed to receive a second, leading Committee Chair Andrew Byron to declare, “hearing no second, the bill is postponed indefinitely.” This decision reflects the committee’s hesitance to move forward, despite the potential economic benefits associated with legal iGaming.

While the legislative session is set to conclude on March 6, the pivotal crossover deadline—marking the last date a bill can transition from one chamber to another—is fast approaching on February 12. This timeframe creates urgency for advocates and lawmakers alike, who must act quickly if they seek to resurrect HB 162 before the deadline.

Tribal Concerns Surrounding Expanded Gaming

The hearing for HB 162 commenced on January 30 but was incompletely addressed due to time constraints. Representatives from the Northern Arapahoe and Shoshone tribes voiced their opposition during testimony, expressing fears that the expansion of gaming—including previously legalized sports betting and historical horse racing—has already diminished their revenue streams. Both tribes underscored that introducing online gambling could exacerbate revenue losses, jeopardizing the financial stability of tribal members and the services they are able to provide.

Testimonies concerning the implications of online gambling drew diverse opinions, with problem gambling and responsible gaming advocates opposing the bill, while the Sports Betting Alliance (SBA)—a consortium consisting of major players such as BetMGM, DraftKings, Fanatics Betting & Gaming, and FanDuel—supported it. Nonetheless, the committee appeared largely unpersuaded by these arguments.

“Transitioning from an unregulated, untaxed iGaming environment to a structured and lawful one allows the state to tap into significant economic advantages while protecting its residents,” emphasized Sarah Filosa, representing the SBA.

Addressing the Black Market: Legalization as a Solution

Filosa highlighted the issue of unregulated sweepstakes sites such as Chumba and Stake, which exploit legal loopholes across the United States. These platforms enable users to play free games but transition to purchasing “coins” or “tokens,” effectively allowing them to gamble real money without adherence to regulatory standards. This raises a critical question that emerged during the hearing: How could legalizing online gambling combat the prevalence of illegal operations?

The response from proponents indicates that establishing a legal framework equips state authorities with the necessary instruments to eliminate illegal operators from Wyoming. Lawmakers, however, posed a perplexing query regarding the feasibility of regulatory enforcement without legalization. John Pappas, representing the iDevelopment Economic Association, elucidated the benefits of formal legalization, stating, “It provides your gaming commission and law enforcement with legitimate legislation to act against unauthorized operations.” He compared this situation to Michigan, which has successfully issued cease-and-desist orders against illegal operators subsequent to the establishment of its legal iGaming and sports betting sectors.

Growing Momentum: Other States Eyeing Legalization

Wyoming stands as one of only three states in the U.S. allowing digital sports betting without retail sportsbooks. House Bill 162 aims solely to legalize online casino gaming, maintaining the absence of in-person casinos within the state. This initiative reflects a nationwide trend, as at least eight other jurisdictions are exploring iGaming legislation during the current session.

Although Virginia has already dismissed its iGaming proposal, discussions continue in several states, including New Hampshire, Maryland, and Indiana, as legislators weigh the operational and economic ramifications of legalizing online gambling.

Overall, while Wyoming’s endeavor to legalize iGaming faces numerous challenges, the dialogue surrounding HB 162 illustrates an ongoing national discourse on the future of online gambling and its potential effects on both state economies and indigenous communities.