House Bill 162, which would authorize online casino gambling should it pass, suffered a major setback last week when a motion to advance the measure out of committee failed to receive a second, prompting chairman Andrew Byron to postpone the bill indefinitely.
Another iGaming Push
Representative Robert Davis filed House Bill 162 that would establish iGaming in the Cowboy State. It would also authorize the Wyoming Gaming Commission to have governance over the industry as it does over retail and mobile sports betting in the state. Davis filed similar legislation last year, but it was unsuccessful.
Davis has noted the stark difference between the embrace of the more familiar sports betting and the murky waters of iGaming. The two-term Republican believes educating fellow legislators and voters is the key to getting online casino gambling passed. “There will be an educational component,” Davis said. “Sports wagering has a lot more exposure than iGaming. Everyone is talking about sports wagering: ‘Did you see the game? Did you get in on the action?’”
Davis’s bill would allow a minimum of five licenses and would tax each operator at 16% of their revenues with a $100,000 licensing fee covering the first five years in operation, while renewals would cost $50,000.
One of the major impediments to passing iGaming legislation is the fear of land-based casino operators that digital casino gambling would lead to cannibalization of their business. The casino owners have invested tens, if not hundreds, of millions in building their properties and pay significant taxes on their revenues. They are a powerful voice in the gaming industry.
However, Wyoming has only tribal casinos, not commercial, which takes some of the sting away from legislators passing iGaming legislation, as tribal nations are exempt from paying taxes to the state. “The iGaming portion sounds good. It doesn’t support any cannibalization, and it looks to be relatively easily implemented based on the things the state of Wyoming currently has going for it,” said Davis.
A Motion Without a Second
Despite some of the momentum Davis’s iGaming legislation had going for it, a recent development has turned the tide against passage this session. The Travel, Recreation, Wildlife, and Cultural Resources Committee discussed the bill for more than an hour before a motion to advance the bill was heard, but a second went unheeded. Therefore, chairman Andrew Byron moved to postpone the matter indefinitely.
Earlier testimony in opposition to the bill by the Northern Arapaho and Eastern Shoshone tribes, along with proponents for responsible gambling, likely contributed to the lack of enthusiasm for the bill by the committee.
Yet, the Sports Betting Alliance (SBA), an industry trade group comprised of mobile gaming powerhouses BetMGM, DraftKings, Fanatics Betting & Gaming, and FanDuel, spoke in favor of regulation, citing several benefits to the state and the taxpayers. “By transitioning from an unregulated, untaxed iGaming environment to a structured and lawful one, the state can harness substantial economic benefits while safeguarding its residents,” said Sarah Filosa on behalf of the SBA.
Although the prospects do not look good, HB 162 could get a second wind if it is revived at the February 12th crossover deadline.
