Wyoming Lawmakers Renew Push to Legalize Online Casinos

Wyoming's 2025 legislative session began with renewed efforts to legalize online casinos, as lawmakers reintroduced House Bill 0162 (HB 0162). Spearheaded by Representative Robert Davis and co-sponsored by Representatives Landon Brown and J.T. Larson, the bill seeks to establish a regulatory framework for interactive gaming under the oversight of the Wyoming Gaming Commission (WGC).

Reviving Online Casino Legislation

HB 0162 builds on the foundation of a similar proposal, HB 0120, which narrowly failed in 2024. This time, the legislation aims to legalize online casino gaming, including operations on tribal lands through state agreements, effectively expanding Wyoming's gaming landscape.

Key Provisions of HB 0162

The bill outlines a robust structure to regulate online casino operations:

Permits and Licensing: The WGC will issue a minimum of five interactive gaming permits, with applications priced at $2,500. Initial operator licences will cost $100,000 for five years, with a $50,000 renewal fee. Vendor permits start at $10,000, with a $5,000 renewal fee.

Revenue Sharing: Operators must remit 16% of their monthly revenue to support the WGC, county programs, and state initiatives such as problem gambling prevention managed by the Wyoming Department of Health.

Player Geolocation: Advanced geolocation technology will ensure players remain within Wyoming borders unless agreements with other states allow cross-border participation.

Projected Economic and Social Benefits

A 2024 study by Spectrum Gaming Group projects online casino revenue in Wyoming to reach $93 million to $138 million in the first year, with potential to double by year five. These figures translate to up to $40 million in annual state tax revenue, earmarked for education, healthcare, and administrative needs.

The study also concluded that online casinos would complement, rather than compete with, tribal gaming operations, alleviating concerns of market cannibalization.

Overcoming Challenges

Representative Davis emphasises the need to educate lawmakers on the benefits of online gaming. Drawing parallels to Wyoming's successful online sports betting legalization in 2021, Davis argues that the state's existing regulatory infrastructure can be adapted to include online casinos.

The legislative session, ending March 6, 2025, provides an opportunity for robust discussions and potential revisions to the bill, addressing any concerns from lawmakers and stakeholders.

Wyoming's Role in the Bigger Picture

If passed, Wyoming would join seven other U.S. states—Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia—that have already legalized online casinos. This initiative underscores Wyoming's recognition of the economic potential of online gaming, particularly for states with smaller populations and flexible legislative systems.

Conclusion: A Flawed License with Limited Appeal

Despite the promising framework outlined in HB 0162, the reality of the situation could be less than favourable for Wyoming residents. With the proposed licensing structure, high fees, and the expected 16% revenue share, operators might struggle to offer competitive returns, especially when it comes to slots. The bill's focus on traditional online casinos could quickly be overshadowed by the rise of crypto casinos, where players can often find higher RTP (Return to Player) rates and more favourable conditions. With slots potentially offering an RTP as low as 80%, the chances of winning in the regulated market would likely be slim, leading many players to seek out alternative options in the growing crypto space. In the end, Wyoming's online casino licence might prove to be a poor substitute for the more profitable and dynamic opportunities offered by decentralized gaming platforms.