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Wyoming Lawmakers Unveil New Online Casino Wagering Legislation
By Jeff Osienya Feb 09, 2024 LegalityThe Equality State is officially betting on online wagering after introducing a new iGaming bill in its legislative chambers. Here’s a look into the measure and its chances for success vis-à-vis what other US jurisdictions are doing in the iGaming realm.In an expected move, Wyoming is exploring the addition of online casino wagering to the state’s regulated gaming menu following the introduction of House Bill 120. Thus, the wheels of bringing online wagering to Wyomingites are now in motion in the jurisdiction with the smallest population in the United States.
The bill is being fronted by Rep Jon Conrad, Robert Davis, and other heavyweight legislators in the Equality State. It seeks to build on the sports wagering platform that already exists in the state, following the passage of House Bill 133, which legalized sports betting when it was signed into law by Governor Mark Gordon. If everything goes according to plan, Wyoming should start accepting online casino wagers as early as 2025.
Details of Wyoming's HB 120
HB 120 seeks to use Wyoming’s firm gaming foundations to build a robust iGaming industry. The bill stipulates that online casino gaming will be directly regulated by the state’s Gaming Commission, which is mandated to award a maximum of five interactive gaming operator permits. Moreover, while there is a cap on the number of operator licenses the regulator can issue, there is no limit on the number of iGaming apps a licensed operator can set up.
To obtain an operating permit in the state, prospective operators must fork out an initial fee of $100,000, renewable after every half-decade for $50,000. On the other hand, vendor permits would cost $10,000 and renewable after every half-decade for $5000.
Further, Wyoming’s proposed iGaming tax rate is 10%, similar to what online sportsbooks in the state are charged. Of the taxes collected, the bill has set aside an annual quota of $300,000 to be directed towards gambling problems that may ensue from the trade in the state. Other funds collected from online gaming would go toward the state’s general fund. Borrowing from the Wyoming sports betting bill, the iGaming bill has also retained the age restriction of 18 years and above instead of 21 years, as in many other US jurisdictions.
Curiously, the language attached to the bill did not point out any estimates regarding the revenue numbers we can expect from Wyoming’s iGaming sector. It did, however, note that the tax collections from iGaming bear the potential of significant returns. HB 120 also permits operators in the Equality State to go into reciprocal partnerships with other jurisdictions.
In essence, should this bill become law, the operators are allowed to share traffic with other gamblers, of course, with the condition that these partner jurisdictions are also permissible to the idea. This follows a similar trajectory to the Multi-State Internet Gaming Agreement (MSIGA), an arrangement that features states like Nevada, Michigan, New Jersey, and Delaware. This is particularly key for Wyoming since, as we mentioned before, Wyoming has the country’s smallest population of roughly 548,000. Thus, building industry partnerships is vital to advancing online casino gambling in the state.
Question Marks On the Stance of Tribes on Online Casino Wagering
As mentioned, the Wyoming online casino wagering architecture hopes to build on the solid groundwork laid out by the existing gaming structure. Part of that resilient framework is the involvement of tribal casinos. The state contains two federally recognized tribes, the Northern Arapaho Tribe and the Eastern Shoshone Tribe of the Wind River Reservation. These two Native American tribes each operate tribal casinos but have yet to express their opinions on the introduction of online wagering in Wyoming.
Rep Robert Davis has indicated that he is also unsure of where the Wyoming Tribes stand on the matter of the legalization of online gaming. Talking to PlayUSA, the legislator pointed out that:
Quote“That would be up to the tribes here in the state of Wyoming. Right now my thought on this matter is that anything in tribal nations would be geofenced out. They already have casinos there, so we don’t want to infringe upon them.”
The iGaming Situation in Other States
While Wyoming’s move to legalize online casino wagering was unexpected by many industry players, it follows a trend many states have taken across the country. For instance, House Bill 2339, sponsored by Rep Edgar Gonzalez Jr, is already being discussed in Illinois. The bill will operationalize iGaming by creating the Internet Gaming Act, which should effectively provide a new revenue stream for the state. The bill proposes a $250,000 initial license fee that will be the license fee for operators. After these licenses are operationalized, they will be allowed to offer up to three skins, and annual renewals will cost $100,000. Illinois has also set a 15% levy on iGaming activity within its borders.
In Maryland, lawmakers are revisiting the online casino agenda. A Senate Bill has been introduced by State Senator Ron Watson seeking to legalize online casinos via a state referendum. Despite facing setbacks last year, the legislators believe their renewed push could spur the state into being the eighth US jurisdiction to okay iGaming.
Similarly, the push for iGaming in Hawaii is picking up pace, having recently moved through the Aloha State’s House Economic Development Committee. Key highlights of the bill include an amendment to allow 18 years as the legal online casino gambling age and special funding to be established for fighting against illegal game rooms.
There is also a similar iGaming push going on in the Empire State. However, the legislative success of New York’s online casino wagering plan seems unlikely given that Governor Kathy Hochul excluded the iGaming agenda from the NY’s 2024 budget.
Way Forward for the Wyoming iGaming Bill
While there’s general optimism about Wyoming’s online casino gaming regulation, it remains to be seen whether the said legislative agenda will bear fruit. Typically, the Equality State holds budgeting sessions during even years. These budget sessions usually last 20 legislative days. Thus, given that Wyoming’s legislative sessions commence on February 12th, we’ll have information on whether the online legislation program will make the state’s budget before the end of the month.
Ideally, revenue generators like iGaming should have a place in state budgets. Be that as it may, Rep Davis states that Wyoming doesn’t consider iGaming a significant revenue generator. He opined:
Quote“It (iGaming) has the potential to raise revenue, and the state is always looking for revenue increases. But we won’t know of its revenue potential until we figure out how much illegal iGaming is going on.”
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