Wyoming May Reconsider Online Gambling With Spectrum Gaming Study And Recommendations

In the wake of the Wyoming House’s rejection of a bill to legalize online gambling last session, efforts to revive the initiative are gaining momentum. Lawmakers recently received a detailed report from Spectrum Gaming Group, commissioned to assess the state’s gambling market and regulatory landscape. The findings could shape a fresh legislative approach in the upcoming session, focusing on modernizing gaming laws and addressing concerns raised during the previous debate.

The failed bill aimed to legalize online gambling, outlining provisions for licensing, oversight, and defining permissible activities. Despite its comprehensive nature, the measure was voted down, with 25 representatives supporting it and 36 opposing, while one was excused.

The new study may offer a roadmap to refine and reintroduce the legislation, potentially swaying lawmakers who opposed it earlier. 

Spectrum Gaming’s study examined several facets of Wyoming’s gambling industry, including pari-mutuel racing, historical horse racing (HHR), skill-based amusement games, charitable gaming, and online sports wagering. The analysis revealed that Wyoming’s regulatory system is largely effective and comparable to those in other gaming jurisdictions. However, the study also highlighted areas for improvement to ensure the state remains competitive and upholds best practices. 

Key findings and recommendations 

Among Spectrum’s recommendations is the establishment of a general counsel position within the Wyoming Gaming Commission (WGC) to strengthen legal oversight. The report also advised raising the minimum age for wagering on HHR and online sports betting from 18 to 21, aligning it with existing regulations for skill-based amusement games. This change reflects a broader industry trend prioritizing responsible gambling practices. 

The report also delved into licensing criteria, urging uniform standards across all gaming operations. Notably, Spectrum suggested revisiting Wyoming’s 15% corporate ownership threshold, which currently triggers licensing for sports wagering applicants. The study called for more flexible rules to accommodate institutional investors while maintaining strict oversight to prevent undue influence on gaming operations. 

To bolster regulatory efficiency, Spectrum proposed a centralized monitoring system for skill-based gaming machines and advocated for statutory amendments. These would allow the WGC’s executive director to extend mandatory licensing timelines in exceptional cases.

Additionally, the study recommended enhanced anti-money laundering measures, including a state-level law criminalizing such activities and the appointment of a WGC law enforcement officer to focus on intelligence within the gaming sector. 

Potential legislative impact 

Proponents of online gambling may turn to the report as a key element to push legislation forward in the state. By addressing many of the issues that may have led to the bill’s failure, a completely reworded bill could have better chances of success.

Opponents of the earlier legislation have expressed caution, emphasizing the need to protect vulnerable populations and prevent the social harms often associated with gambling. While some remain unconvinced, Spectrum’s focus on regulatory safeguards and responsible gambling could help bridge the divide. 

The potential economic benefits of online gambling are a key driver for its advocates. Wyoming’s sparse population and rural character pose challenges for traditional gambling operations, but online platforms could open new revenue streams for the state. Spectrum’s report did not provide a specific revenue projection, but supporters argue that legalizing online sports betting could generate millions in tax revenue annually.