The Wyoming Gaming Commission has initiated a comprehensive study to evaluate the feasibility of expanding gaming in the state, particularly focusing on the potential incorporation of iGaming, which includes online slot machines and table games. The commission, which oversees horse racing and gambling within the state, has enlisted the expertise of Spectrum Gaming Group. This consulting firm specializes in the regulation, economics, and policies of legal gaming markets, and will delve into the existing gaming landscape in Wyoming over the next several months.
The Spectrum Gaming Group’s directive is to provide the Wyoming Gaming Commission with detailed recommendations regarding regulatory improvements and possible expansion. This initiative was funded through the state’s 2024 General Appropriations bill, which earmarked finances for a statewide gaming study. Currently, the commission regulates various forms of betting, including online sports betting, skill games, horse racing, slot-like historical horse racing machines, parimutuel wagering, and charitable gaming. Wyoming also has four tribal casinos and a state-operated lottery.
The study will specifically explore how iGaming could operate within the state and the economic benefits it might bring. By the end of the study, Spectrum is expected to recommend whether to pursue iGaming legislation during the 2025 General Session of the state legislature. Wyoming, despite being the least-populated state with fewer than 600,000 residents, spans a vast area, making it the 10th largest state by total area. This sparse population distribution has deterred commercial casino companies from entering the market.
Wyoming’s gaming landscape includes two federally recognized tribes, the Northern Arapaho and Eastern Shoshone, who manage four land-based casinos on their sovereign territories. The largest of these is Northern Arapaho’s Wind River Hotel & Casino in Riverton, featuring 700 slot machines and multiple table games. Although the state’s population is small, its authorization of commercial online sports betting attracted prominent industry players like FanDuel and DraftKings. Other mobile sportsbooks such as BetMGM, Caesars Sportsbook, and Fanatics have also paid the $100,000 licensing fee for a five-year permit to operate in Wyoming. Sports betting in the state generates more than $100,000 monthly in tax revenue based on a 10% tax on the money won by oddsmakers, and in-person sports betting is permitted at tribal casinos.
FanDuel and DraftKings, along with the other online sportsbooks operating in Wyoming, also run online casinos in other states where iGaming is legal, such as Connecticut, Michigan, New Jersey, and West Virginia. Online casino gambling, unlike the sports betting sector which operates on thin margins, tends to generate higher revenue and is often taxed at a higher rate. For instance, New Jersey taxes online sportsbook revenue at 13% and iGaming revenue at 15%, while Pennsylvania imposes a 36% tax on sportsbooks and a 54% tax on online slots.
The possible implementation of iGaming in Wyoming, with its higher revenue potential and expected higher tax rate than the current 10% on online sports betting, could offer a substantial financial boost to the state. The Wyoming Gaming Commission’s Executive Director, Charles Moore, emphasized the need for a thorough and unbiased study, stating, “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. 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.”
As it stands, only seven states—Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia—have legalized iGaming.
