The winds could blow in a different direction for Wyoming in 2025, as a policymaker in the state is predicted to reinstate online casino legislation next year. The reintroduction of iGaming in Wyoming could potentially earn up to $30 million in much-needed revenue.

A lawmaker in Wyoming is set to renew efforts to legalize online casino gaming, potentially positioning the state to join the exclusive group of US states that permit this form of gambling. Representative Robert Davis has announced plans to reintroduce interactive gaming legislation during the 2025 legislative session, following a promising study conducted by the Wyoming Gaming Commission.

Study highlights iGaming potential

The Wyoming Gaming Commission recently commissioned a study from Spectrum Gaming, a respected consulting firm in the gambling industry. The findings suggest that iGaming could significantly boost state revenue without negatively affecting existing forms of betting. For instance, Spectrum Gaming estimated that the first year of iGaming operations in Wyoming could generate total activity of approximately $93 million up to $138 million, with potential growth to $199 million by the fifth year.

From a revenue perspective, the state could see $20 million to as much as $30 million in its first year of legalized online casino operations and up to $40 million by the fifth year. These numbers could make iGaming an attractive new revenue source for Wyoming, which does not impose an income tax and relies heavily on taxes from property, mineral rights, and energy generation.

A second attempt at legislation

Earlier in 2024, Davis introduced House Bill 0120 (HB0120), which sought to authorize and regulate interactive gaming under the oversight of the Wyoming Gaming Commission. The bill detailed provisions for licensing fees, revenue collection, continuous appropriations, and penalties for violations.

But despite its comprehensive framework, HB0120 ultimately did not gain the traction it needed to pass. However, Davis remains optimistic, citing the favorable findings of the WGC study and the potential for Wyoming to lead the charge in expanding iGaming legislation. The 2025 legislative session, which begins on January 14, will provide Davis with another opportunity to advocate for the economic and social benefits of iGaming.

Addressing tribal concerns

Not everyone is enthusiastic about the prospect of iGaming in Wyoming. Some tribal leaders involved in gaming have expressed reservations, fearing that online casinos could compete with their existing gaming operations. However, Davis' previous legislation included provisions to enable tribal operators to participate in internet gaming, ensuring they would have a stake in the emerging market. Bringing tribal leaders into the conversation will be a key focus for Davis as he works to build a broader coalition of support for the bill in 2025.

Currently, only seven states - New Jersey, Connecticut, Michigan, Delaware, Rhode Island, Pennsylvania, and West Virginia - permit online casino gaming. And while Wyoming's small population might seem like a limiting factor, its entry into the iGaming market could have symbolic importance.

For the gaming industry, every state that legalizes iGaming signals growing momentum and creates a precedent that could encourage larger states to follow suit. Although major markets like New York and Illinois remain the ultimate prize for iGaming operators, smaller states like Wyoming play a critical role in demonstrating the viability and the benefits of online casinos. Wyoming's approval could also spur other states with smaller populations, such as Montana or the Dakotas, to explore similar legislation.

Economic implications

Despite running a budget surplus in the fiscal year of 2024, Wyoming's lack of income tax makes new revenue sources an ongoing priority. The state's economic reliance on energy production and mineral extraction adds an element of volatility to its budget, making diversified revenue streams particularly appealing.

But by embracing iGaming, Wyoming could tap into a lucrative industry while preserving its economic independence. The state's ability to regulate and collect taxes on online casino activities would provide a steady influx of funds to support public services and infrastructure.

What's next for Wyoming?

As Davis prepares to reintroduce his iGaming bill, industry experts and policymakers will be watching closely. The legislative process will likely involve debates over regulation, taxation, and the integration of tribal gaming interests. If successful, Wyoming could make history as one of the first states to champion iGaming in 2025, signaling a new era for online wagering in the US. The outcome of this effort will not only shape the state's gaming landscape but could also influence national trends in online gambling legislation.