Wyoming interested in launching online casinos

Wyoming, one of the most innovative states when it comes to crypto and sports betting, is now looking to add to and expand its gambling framework with the possible introduction of online casinos, various media outlets reported.

Far from rushing, though, the Wyoming Gaming Commission is determined to take its time in the matter. The regulator has commissioned a new feasibility study that will seek to better understand if there is enough demand for iGaming products such as casino games of chance, with Spectrum Gaming Group taking the helm.

Feasibility study to assess whether Wyoming should get online casinos

Spectrum Gaming Group will focus on understanding the economics, regulation, and policies of legal gambling markets and how those lessons can now be applied to Wyoming.

The feasibility survey is likely to take several months at the very least, with Wyoming already dipping a toe in iGaming and making several suggestions that it may pursue this aspect of the industry through a new General Appropriations bill that proposed the survey in the first place.

Wyoming would hope to expand the current gambling framework which includes four brick-and-mortar tribal casinos, sports betting, and the state lottery to include online casinos. In all likelihood, the matter will be debated in the upcoming general session in 2025.

There are some reasons for concerns. The concentration of gambling in small places, such as Wyoming, which has around 600,000 residents, could lead to soaring rates of gambling addiction. However, those fears are mostly brushed aside when factoring in the role that offshore and illegal operators already play in driving these social processes.

Wyoming could attract brands willing to pay tax and iGaming fee

There is certainly sufficient interest from gambling companies, with companies such as FanDuel, DraftKings, BetMGM, Caesars Sportsbook, Fanatics, and Penn Entertainment. The companies were happy to pay $100,000 for a licensing fee and then honor a fairly liberal 10% tax rate on their sports betting.

However, the windfall from online casinos could be much higher, as the tax revenue could easily be charged from 15% upwards, and up to 54% on slots in places such as Pennsylvania. The feasibility study will help better understand if Wyoming has sufficient demand for iGaming products such as these and also help advise lawmakers on what the best tax rate may actually be.

Image credit: Flickr (@formulanone)