Published on: September 30, 2024, 04:35h.
Last reviewed on: September 30, 2024, 04:50h.
The Wyoming Gaming Commission has initiated a study to explore the potential for expanding gaming in Wyoming.
The state gaming regulatory agency of Wyoming has hired Spectrum Gaming Group, a reputable consultancy specializing in the regulation and economics of legal gaming markets. Over the coming months, the Spectrum team will analyze gaming in Wyoming and offer recommendations on regulatory enhancements and insights into potential expansion.
The Spectrum investigation will provide the gaming commission with information on how iGaming, such as online slot machines and table games, could be advantageous for the state. The report is expected to suggest a regulatory framework to authorize interactive gaming.
The feasibility study on gaming in Wyoming was approved through the state’s 2024 General Appropriations bill, which included funding for a comprehensive review of gaming. Currently, the Wyoming Gaming Commission oversees online sports betting, skill games, horse racing, historical horse racing machines resembling slots, parimutuel wagering, and charitable gaming.
Wyoming is also the location of four tribal casinos and a state-operated lottery.
iGaming Examination
Spectrum will assist the Wyoming Gaming Commission in determining whether to recommend iGaming legislation to the Legislature during their 2025 General Session.
Wyoming, with a population of less than 600K residents, is the least populous state in the country. However, spanning over 970K square miles, Wyoming is the 10th largest state by total area. The widely dispersed population in the state has deterred commercial casino companies from entering Wyoming.
The state’s two federally recognized tribes — the Northern Arapaho and Eastern Shoshone tribes — own and operate four land-based casinos on their sovereign lands. The largest tribal casino is the Northern Arapaho’s Wind River Hotel & Casino in Riverton, which features 700 slots and over a dozen table games.
Despite Wyoming’s small population, the state’s endorsement of commercial online sports betting attracted major industry players such as FanDuel and DraftKings. Other mobile sportsbooks that obtained a five-year permit by paying a $100K licensing fee include BetMGM, Caesars Sportsbook, and Fanatics. Penn Entertainment previously operated Barstool Sportsbook in the state.
Profits generated by sports betting are subject to a 10% state tax. On average, Wyoming receives over $100K per month from online sports betting. Sports betting is also allowed at the tribal casinos in person.
Each of the aforementioned online sportsbooks operates online casinos where permitted. FanDuel and DraftKings provide iGaming services in Connecticut, Michigan, New Jersey, and West Virginia.
iGaming Growth
While sports betting yields low margins, online casino gambling often generates higher revenue. In states with existing online sports wagering and internet casinos, iGaming revenue is often taxed at a higher rate than sports betting revenue.
For instance, in New Jersey, online sportsbook revenue is taxed at 13%, while iGaming is taxed at 15%. In Pennsylvania, sportsbooks share 36% of their revenue with the state, while online slots are taxed at 54%.
With potentially higher revenue and tax rates compared to the 10% tax on online sportsbooks in Wyoming, iGaming could bring a significant financial boost to the state. Charles Moore, Executive Director of the Wyoming Gaming Commission, stated that the Spectrum study will help the commission assess the pros and cons of iGaming.
We believe that iGaming has the potential to bring significant benefits to our state, but we also recognize the need for a comprehensive and objective analysis to inform our decision-making process,” said Moore. “By working with Spectrum Gaming Group, we are confident that we will receive valuable insights and recommendations that will help us navigate this rapidly evolving industry.”
Legalized iGaming is currently limited to seven states — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.